UK Natural Gas Pulls Back from 10-Month High

European natural gas futures were below €39.4 per megawatt-hour, holding the sharp decline from the 11-month high of €43.6 on October 25th amid fresh expectations of ample supply.

Reports emerged stating that utilities and buyers are approaching a deal with Azerbaijan to keep Russian gas flowing into Europe after the current agreement with Ukrainian pipelines ends at the end of the year, securing supplies in the near term and reducing concerns of more dependency on LNG imports.

In the meantime, unusually mild weather as the European winter approaches kept demand for gas-intensive heating at seasonally lower levels.

This allowed the continent’s storage capacity to remain near 95% full ahead of the winter.

Still, lingering geopolitical concerns in the Middle East kept the pullback in check.

Prices for iron ore cargoes with a 62% iron content steadied near $104 at the start of November as investors continued to assess the demand outlook in China, the top consumer.

A private survey indicated that factory activity in China turned expansionary in October, following a series of stimulus measures from Beijing aimed at reviving growth.

This report corroborated official data released the previous day, which marked the first manufacturing expansion in six months.

Investors are now looking forward to potential additional stimulus measures expected to be discussed at the National People’s Congress meeting scheduled for next week, with markets anticipating announcements related to debt and other fiscal policies.

Meanwhile, imported iron ore stocks at major Chinese ports have risen for the fourth consecutive week, reflecting a decline in discharge volume.