Investing.com - European natural gas prices hovered near their lowest levels in three weeks as traders balanced reports of progress in Middle East diplomatic talks against persistent European storage deficits and ongoing shipping bottlenecks through the Strait of Hormuz. Benchmark Dutch front-month futures and equivalent British gas contracts traded flat on Wednesday, lingering near the multi-week lows touched in the previous session. The prospect of easing geopolitical friction has helped pull European gas prices down from the multi-year peaks reached late last month. With European utilities facing intense competition from Asian buyers for available spot LNG cargoes, energy analysts expect European natural gas contracts to remain structurally supported, leaving the market highly sensitive to any delays or disruptions in ongoing diplomatic talks. Related articlesEuropean gas prices steady near 3-week lows as traders weigh supply risksTrump calls on oil companies to lower gasoline pricesHere's where Deutsche Bank's analysis sees fair value for gold prices