European Natural Gas Near €87/MWh, Highest Since 2022
Updated
Summary
European natural gas prices hovered near €87 per megawatt-hour on Thursday, their highest level since 2022, amid Persian Gulf supply risks and low winter storage reserves.
Why it matters
Shipping disruptions through the Strait of Hormuz have constrained LNG flows from the Middle East, which accounts for around 20% of global LNG exports. The loss of Gulf supplies has intensified competition for spot cargoes, tightened availability for Europe and complicated efforts to replenish inventories.
European gas storage facilities are around 74% full, below historical averages for this time of year. The recovery in Norwegian pipeline flows provided some relief.
What remains uncertain
Storage replenishment could face further challenges from early-season cold weather. Updated forecasts point to a significant cold snap across northeastern Europe from next weekend, which could boost heating demand.