|

Natural Gas: Risk premium sustained on Gulf disruptions – Rabobank

Rabobank’s Florence Schmit highlights that TTF Natural Gas remains supported by low European storage and disrupted Gulf LNG flows. The absence of meaningful U.S.-Iran progress keeps a structural risk premium in prices, with 2026 TTF seen averaging €60/MWh in Q4. For 2027, the base case is €42/MWh, but infrastructure damage could push TTF into a €50–60/MWh range.

Hormuz risks keep TTF supported

"For gas markets, the key issue is therefore not whether an occasional vessel can pass through Hormuz, but whether negotiations can produce a stable framework that restores Qatari LNG exports on a sustained basis."

"As long as there are no meaningful U.S.-Iran negotiations, there will be no meaningful surge in LNG flows out of the Gulf."

"The stop-start pattern of cargoes will continue to leave Europe competing for marginal Atlantic supply at a time when storage remains low and winter demand is approaching."

"That keeps European natural gas prices elevated: temporary progress on any type of corridor through Hormuz can trigger short-lived sell-offs, but only a credible political agreement that restores shipping confidence can remove the structural risk premium from TTF."

"Our €42/MWh forecast for 2027 therefore remains the base case, while an infrastructure-damage scenario that delays the recovery in flows would make TTF more likely to trade in the €50–60/MWh range through much of next year."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY recovers to 154.00 amid hawkish BoJ repricing

USD/JPY is recovering from six-month lows of 152.89, retesting 154.00 in European trading on Tuesday. However, the upside attempts appear limited as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to boost the Japanese Yen. Meanwhile, US Dollar selling remains unabated despite hawkish Fed expectations and rising geopolitical tensions, lending additional support to the pair.

Gold dips below $4,400 as Middle East tensions grow

Gold posts marginal gains for the third straight day amid risk-off sentiment as tensions in the Middle East escalate and Oil prices rally, strengthening the case for higher interest rates in the world's major economies. Against this background, the XAU/USD pair explores prices below $4,400 during the European trading hours, extending its decline from last week’s highs in the $4,500 area.

Ripple and Stellar outlook: Hold bullish bias above EMAs as derivatives back upside
Ripple (XRP) and Stellar (XLM) hold above the key support zones on Tuesday, hinting at an upside move. Derivatives metrics further support the recovery, with both altcoins showing positive funding rates and rising long positions. Derivatives data shows a bullish tilt among XRP and XLM traders.
Europe in focus: September 2026
Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.