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.



News Stream
European Gas Eases but Supply Risks Persist
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.
2026-08-04
European Natural Gas Rebounds
European natural gas prices rose above €59 per MWh on Tuesday, rebounding after Monday's selloff amid uncertainty over renewed US-Iran diplomacy following mixed signals from both sides. President Trump said on Monday that talks were underway, warning that Iran had a last chance to reach a deal and avoid large-scale air strikes. Tehran, however, denied holding talks with Washington, although it said discussions with Oman to ensure safe passage through Hormuz were progressing. Another reported attack on a commercial vessel in the waterway further highlighted ongoing security risks. The conflict has disrupted roughly one-fifth of global LNG supply, intensifying competition between European and Asian buyers for cargoes and slowing the pace of Europe's gas storage replenishment. European storage levels have fallen to their lowest for this time of year in nearly two decades, heightening concerns over the region's gas supply security as the heating season draws closer.
2026-08-04
European Gas Tumbles After Trump Cancels Attack on Iran
European natural gas prices fell to around €57.5 per MWh on Monday, after President Donald Trump called off a planned weekend attack on Iran, saying Tehran and other Middle Eastern nations had assured him they were working toward a deal. Trump added that negotiations between the parties are set to begin later today, providing some relief after days of escalating tensions that had driven energy prices sharply higher. However, traders remain on edge after an explosion was reported near a tanker off the coast of Oman. European natural gas prices surged 36% in July as renewed fighting heightened concerns over LNG supplies from the Persian Gulf and Europe’s ability to replenish gas inventories ahead of winter. European gas facilities ended last month about 55% full, lagging behind the pace needed to meet pre-winter targets before the heating season begins in November.
2026-08-03