European Gas Prices Extend Advance

European natural gas prices rose further above €88 per megawatt-hour on Monday, the highest since December 2022, as limited Gulf LNG supplies continue to hamper the EU’s efforts to replenish depleted gas storage ahead of winter. Europe’s gas storage levels have risen steadily in recent weeks, reaching 74.31% of capacity as of October 18, but remain below typical levels for this time of year. Ongoing tensions and security threats in the Middle East have fueled concerns about shipping safety and tighter global energy supplies. LNG flows from the region remain about 80% lower than last year’s levels. This sets the stage for intensified competition between Asia and Europe, the world’s two largest LNG-importing regions, for available cargoes as winter approaches. Prices remain vulnerable to further spikes in the event of a colder winter and sustained supply disruptions.