EUROPEAN GAS PRICES TOP €100 PER MEGAWATT-HOUR

European natural gas prices rose above €100 per megawatt-hour on Wednesday for the first time since December 2022. Dutch Title Transfer Facility futures for November delivery, a European benchmark, reached an intraday high of €100.75. Prices have risen by about 40% this month. Market analysts linked the increase to disruptions affecting liquefied natural gas shipments from the Gulf region. They also cited concern that the conflict between the United States and Iran could further restrict supplies.

Estimates of how full EU gas storage facilities are range from 72% to 74.9%. Gas Infrastructure Europe reported the higher figure for 26 October and said it was below typical levels for the time of year. The organisation put storage in Germany at approximately 61.7% and in the Netherlands at 65.5%. Winter heating demand will draw on those reserves in the coming months. The differing EU-wide figures leave uncertainty over the precise amount of gas already stored.

The EU said it had no concerns about supplies but warned households to expect a “difficult” season. Trading Economics said forecasts of colder weather in parts of Europe and Asia could increase heating demand. It said stronger demand in both regions could intensify competition for liquefied natural gas cargoes. The UK government is also seeking to cushion the effect of high energy bills.