European gas nears highest level since December 2022; UK prices remain near 2022 highs
Updated
Summary
European natural gas prices hovered near €87 per megawatt-hour on Wednesday, close to their highest level since December 2022. UK natural gas prices fell to 213 pence per therm that day but remained near their highest levels since 2022.
Why it matters
The loss of Gulf LNG supplies has intensified competition for spot cargoes, limiting availability for Europe and making it harder for the region to rebuild inventories. Separately, unplanned outages at Norwegian gas infrastructure have reduced pipeline export capacity to Europe.
European gas storage facilities were 73.94% full, still below historical averages. In the UK, growing renewable output has reduced dependence on gas-fired electricity, although the country remains exposed to fuel price swings.
What remains uncertain
Forecasts of colder-than-usual weather, particularly in Central Europe, could drive up heating demand and prompt earlier withdrawals from storage.