European Gas Prices Rebound

2026-07-07 01:32 By Judith Sib-at 1 min. read

European natural gas prices rose toward €45 per MWh on Tuesday, retracing part of the previous session’s decline amid forecasts of a summer heatwave in the region.

Weather models indicate that another spell of extreme heat is set to hit Northwest Europe, which is expected to significantly boost air-conditioning use and power demand.

The increase in demand comes as the region’s gas inventories remain relatively low, with storage facilities currently around 49% full, well below the nearly 60% level recorded at the same time last year.

This has heightened concerns over whether Europe will be able to rebuild sufficient reserves ahead of winter.

Moreover, market participants noted that LNG inflows into Europe have not yet risen enough to ease regional supply constraints, even as shipping activity through the Strait of Hormuz surged following progress in US-Iran peace talks.



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European Gas Prices Rebound
European natural gas prices rose toward €45 per MWh on Tuesday, retracing part of the previous session’s decline amid forecasts of a summer heatwave in the region. Weather models indicate that another spell of extreme heat is set to hit Northwest Europe, which is expected to significantly boost air-conditioning use and power demand. The increase in demand comes as the region’s gas inventories remain relatively low, with storage facilities currently around 49% full, well below the nearly 60% level recorded at the same time last year. This has heightened concerns over whether Europe will be able to rebuild sufficient reserves ahead of winter. Moreover, market participants noted that LNG inflows into Europe have not yet risen enough to ease regional supply constraints, even as shipping activity through the Strait of Hormuz surged following progress in US-Iran peace talks.
2026-07-07
European Gas Decline
European natural gas prices fell to €44.4 per MWh on Monday after climbing to a three-week high in the previous session, as geopolitical tensions in key shipping routes eased significantly. Shipping traffic through the Strait of Hormuz continues to recover amid progress in diplomatic efforts. However, concerns persist over Europe’s slow progress in rebuilding gas inventories. The region’s storage outlook remains tight, with storage facilities currently around 49% full, well below the nearly 60% recorded during the same period last year. The relatively low inventory levels have reinforced concerns about the region’s ability to build adequate reserves ahead of winter. Also providing near-term support for prices, high temperatures across much of Europe accelerated gas-fired power generation to meet air-conditioning demand.
2026-07-06
European Gas Prices Hit 3-Week High
European natural gas prices rose to around €45.4 per MWh, the highest in three weeks, as increased consumption due to heatwave offset some of the relief from the reopening of the Strait of Hormuz. Extreme heat continues to bear down on Europe, sharply increasing electricity demand for air conditioning. This comes at a time when inventory levels are low. The region is struggling to replenish inventories following earlier supply disruptions, with storage facilities currently around 48% full, well below the 56% level recorded at the same period a year ago and the five-year average of 61%. Meanwhile, Qatar and Pakistan confirmed that the US and Iran made positive progress during indirect talks in Doha, signaling that diplomacy was holding despite recent hostilities. EU gas prices climbed more than 7% so far this week, on track for the first weekly gain in four.
2026-07-02