European natural gas futures dipped below €39 per megawatt-hour, easing from the recent high of €39.4 on August 31st.
This drop comes as markets weigh potential supply risks ahead of the high-demand winter season.
Contributing to the evolving supply landscape, Turkey signed a 10-year LNG deal with Shell, allowing for shipments to be redirected to Europe, aligning with Ankara's ambition to play a larger role in European and Asian gas markets. These efforts are part of Europe's broader strategy to rebuild supply chains disrupted by Russia's invasion of Ukraine.
Despite these measures, uncertainty around output from major producers has kept prices elevated since the end of Q2.
European gas storage is at about 92% capacity, surpassing the EU's November target by over two months' worth of capacity.
Additional pressure on supply has arisen due to recent maintenance activities, which have reduced Norwegian gas nominations by 10 million cubic meters per day.
Ongoing supply uncertainties and planned maintenance activities continue to shape the market, even as robust storage levels offer some reassurance.