EU Natural Gas Prices Remain Near Multi-Year Highs

European natural gas prices fell below €86 per megawatt-hour on Wednesday but remained near their highest levels since 2022, as Middle Eastern LNG exports remained constrained and gas storage levels were still low. Although countries including the US, Canada, and Nigeria have increased LNG exports, curtailed supplies from the Persian Gulf has intensified competition for spot cargoes, limiting availability for Europe and making it harder for the region to rebuild inventories. Europe’s gas storage facilities are 73.94% full, still below historical averages. Forecasts of colder-than-usual weather, particularly in Central Europe, could drive up heating demand and prompt earlier withdrawals from storage. Meanwhile, unplanned outages at Norwegian gas infrastructure have also reduced pipeline export capacity to Europe. With low gas storage levels and uncertain Gulf supplies, Europe faces the risk of sharp price increases if a severe cold snap hits this winter.

European natural gas prices climbed to €86 per megawatt-hour on Tuesday, reaching their highest level since December 2022 as concerns over limited supplies and low storage levels intensified ahead of winter. Gas facilities across Europe are currently 73.75% full, leaving inventories well below typical levels for this time of year. Forecasts for colder weather in northwestern Europe from next weekend could further increase heating demand, putting additional pressure on already limited reserves. With storage levels lower than in previous years, the market remains particularly vulnerable to sudden temperature changes or unexpected supply disruptions. Stronger European demand could also intensify competition for liquefied natural gas (LNG) cargoes in the global market. Meanwhile, escalating tensions in the Middle East have driven North Asian LNG prices to nearly three times their pre-conflict levels, increasing competition between Asian and European buyers for available shipments.

EU Gas increased to 84.52 EUR/MWh, the highest since December 2022. Over the past 4 weeks, Natural Gas EU gained 2.19%, and in the last 12 months, it increased 168.06%.