EU Natural Gas Prices Rise Toward 4-Year High

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.