European Gas Prices Bounce Back
European natural gas prices rose above €77/MWh on Friday, rebounding after three consecutive sessions of losses, with depleted reserves and disruptions to LNG shipments remaining in focus. The region is entering winter with low storage levels after the US-Iran war severely curtailed LNG supplies from the Persian Gulf and record summer heatwaves hampered efforts to ...
European natural gas prices surged above €77 per megawatt-hour on Friday, marking a reversal after three days of declines. The price jump was driven by concerns over low reserves and interruptions to liquefied natural gas (LNG) deliveries. The region is bracing for winter with limited storage levels, as the US-Iran conflict limited LNG supplies from the Persian Gulf and intense heatwaves during the summer hampered efforts to replenish inventories.
Underground storage facilities were only about 68% full, falling far short of seasonal averages and the EU's goal of 80% capacity by December. The situation could be exacerbated by strong demand from Asia and other buyers, potentially sparking fiercer competition for LNG cargoes as colder weather arrives, leaving the region more vulnerable to price surges.
European gas prices have nearly tripled this year and hit their highest level since December 2022 earlier this week. However, despite Friday's rise, European gas prices were down more than 2% this week, their first weekly decline in six months.
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