Europe gas prices hit highest level since January 2023 on Middle East supply fears
Natural gas prices in Europe rose to their highest level since January 2023 on Monday amid concerns that supplies from the Middle East could be disrupted, adding fresh pressure on the continent’s energy market.
According to the report, the Dutch TTF gas contract for next month was trading at 69.90 euros as of 11:34 a.m. local time. That marked a 4.4% increase from Friday’s closing price of 66.97 euros.
Rising tensions in the Middle East have intensified fears of further disruption to liquefied natural gas exports from the Gulf. The situation has weighed on the global LNG market, particularly for major regional exporters including Qatar.
Meanwhile, data from Gas Infrastructure Europe shows that 64.7% of European Union gas storage is full. That level is considered below the historical norm for this time of year and has raised concerns about Europe’s readiness to fill storage ahead of the winter heating season.
Although forecasts for relatively milder weather in early September could limit short-term demand, low storage levels and uncertainty over LNG supplies from the Gulf continue to support prices.
Analysts say that if disruption to LNG exports from the Gulf continues, European buyers will have to compete more aggressively with Asian markets to secure available cargoes. They say the combination of geopolitical risks, low storage in Europe and constrained global supply could keep the gas market volatile in the period ahead.
Dutch TTF is one of the main benchmarks for gas pricing in Europe, and its fluctuations are usually followed as a gauge of the continent’s energy market conditions. The Gulf is also one of the key routes and supply hubs for liquefied natural gas in global markets.
