European Gas Prices Surge Amid Global LNG Competition

European natural gas prices have risen as Asian, particularly Chinese, importers resumed spot LNG purchases after a period of reduced activity, intensifying competition for supplies between Europe and Asia. This increased demand from Asia, combined with supply constraints due to scheduled maintenance and unplanned outages on Norwegian pipelines, has tightened the European gas market. Benchmark Dutch TTF futures saw notable gains, with prices climbing over 4% in midday trading, though they remain significantly below levels seen earlier in the year. Lower prices previously encouraged buyers to return to the market, but renewed global demand and supply disruptions now threaten Europe's ability to replenish storage ahead of winter. Meanwhile, the European Union is set to unveil a roadmap aimed at reducing reliance on Russian energy imports, including a proposed ban on new Russian gas deals by year-end. Rising oil prices, which influence some gas contracts, have also contributed to the upward momentum in gas prices.