European natural gas prices retreat from four-year highs

(1) European natural gas prices have retreated from a four-year high as traders assess the potential follow-up actions of the US government in the Iran conflict and the possible impact on Middle Eastern gas supply. (2) Despite global supply shortages, low inventories, and competition between Europe and Asia for gas sources, European natural gas prices are still nearly three times higher than the same period last year. (3) Europe’s gas storage facilities are only 75% full, and forecasts indicate a cold snap will hit Europe next week. Heating demand is higher than usual for this time of year, adding pressure to the market.