European Gas Prices Remain Elevated Amid Winter Supply Fears
European natural gas prices rose above €96/MWh on Wednesday, hovering near their highest level since late 2022, as concerns mount over the continent’s gas supply for the coming winter and the ongoing conflict in the Middle East. Reports that the US has told several Persian Gulf nations to prepare for a fresh military campaign against Iran after the midterm elections have added a new risk premium to prices. Traders are also monitoring the Israeli election, which could help shape the course of the US war with Iran. The conflict has disrupted LNG supplies from the Gulf, which accounts for around a fifth of global supply, complicating Europe’s efforts to rebuild inventories. Gas storage across the region is about 75% full, the lowest level for this time of year dating back 2009. Meanwhile, temperatures are expected to drop across the continent, potentially driving up heating demand in the coming days. Unplanned outages in Norway are adding to supply concerns.
European natural gas prices rose above €96/MWh on Wednesday, hovering near their highest level since late 2022, as concerns mount over the continent’s gas supply for the coming winter and the ongoing conflict in the Middle East. Reports that the US has told several Persian Gulf nations to prepare for a fresh military campaign against Iran after the midterm elections have added a new risk premium to prices. Traders are also monitoring the Israeli election, which could help shape the course of the US war with Iran. The conflict has disrupted LNG supplies from the Gulf, which accounts for around a fifth of global supply, complicating Europe’s efforts to rebuild inventories.
Gas storage across the region is about 75% full, the lowest level for this time of year dating back 2009. Meanwhile, temperatures are expected to drop across the continent, potentially driving up heating demand in the coming days. Unplanned outages in Norway are adding to supply concerns.