European Gas Advances Amid Supply Concerns

European natural gas prices rose above €81/MWh on Wednesday after falling in the previous session, returning to levels close to 2022 highs as supply concerns persist ahead of the winter heating season. Military tensions have kept the Strait of Hormuz largely inaccessible to commercial shipping, keeping Qatari LNG export flows severely restricted and limiting supplies to Europe. European gas storage facilities are around 68% full, still below the seasonal average at a time when inventories would typically be nearing maximum capacity. Concerns over supply security have been reinforced by JERA Global CEO Yukio Kani, who warned that Europe’s low inventories leave the region vulnerable to prolonged disruptions and stronger competition for LNG cargoes. At the same time, scheduled maintenance at Norwegian gas facilities is temporarily reducing pipeline supplies to Europe, further tightening near-term supply.