European Gas Eases but Supply Risks Persist

2026-08-04 12:52 By Agna Gabriel 1 min. read

European natural gas prices have eased to €58/MWh, around 9% lower than the 3-1/2-year high of €63.7/MWh reached on July 24, but they remain nearly 70% above levels seen at the same time last year.

Prices continue to be supported by concerns over global LNG supply following the conflict in the Middle East, which disrupted around one-fifth of global LNG flows and hindered Europe's summer stockpiling efforts.

EU gas storage is currently only 57% full, the lowest seasonal level since 2009, well below historical averages.

While the European Commission remains confident that substantial spare LNG import capacity and a storage target of 80% will be sufficient to meet winter demand, Europe is expected to face intense competition from Asia for available cargoes, keeping upward pressure on prices.

Although recent diplomatic signals between the US and Iran have eased oil prices and raised hopes for improved shipping through the Strait of Hormuz, LNG supply risks remain elevated.



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