European Natural Gas Hovers Near Multi-Year Highs

European natural gas prices held above €87/MWh on Thursday, hovering just below their highest levels in nearly four years, as constrained Middle Eastern LNG supplies and low storage levels heightened concerns over winter availability. Recent attacks on vessels in the Strait of Hormuz have raised doubts about how quickly regional gas shipments can recover, with LNG exports running around 80% below year-ago levels. Alternative suppliers have limited capacity to rapidly compensate for the loss of Gulf exports, increasing the risk of tight market conditions persisting into 2027. European gas storage stood at 74.58% capacity as of October 21, the lowest level for this time of year since records began in 2009, leaving the region with a limited supply buffer as winter approaches.