European Gas Prices Bounce Back
European natural gas prices rose above €77/MWh on Friday, rebounding after three consecutive sessions of losses, with depleted reserves and disruptions to LNG shipments remaining in focus. The region is entering winter with low storage levels after the US-Iran war severely curtailed LNG supplies from the Persian Gulf and record summer heatwaves hampered efforts to rebuild inventories. Underground storage facilities were only around 68% full, well below seasonal averages and the EU’s target of 80% capacity by December. Strong demand from Asia and other buyers could also drive more intense competition for LNG cargoes when colder weather sets in, leaving the region more exposed to price spikes. European gas prices have nearly tripled so far this year and reached their highest level since December 2022 earlier this week.
European natural gas prices rose above €77/MWh on Friday, rebounding after three consecutive sessions of losses, with depleted reserves and disruptions to LNG shipments remaining in focus. The region is entering winter with low storage levels after the US-Iran war severely curtailed LNG supplies from the Persian Gulf and record summer heatwaves hampered efforts to rebuild inventories. Underground storage facilities were only around 68% full, well below seasonal averages and the EU’s target of 80% capacity by December.
Strong demand from Asia and other buyers could also drive more intense competition for LNG cargoes when colder weather sets in, leaving the region more exposed to price spikes. European gas prices have nearly tripled so far this year and reached their highest level since December 2022 earlier this week.