European Gas Prices Ease After Reaching Highest Since 2022
The TTF contract touched €87.44 per megawatt-hour before retreating, as supply concerns and storage demand kept pressure on prices.
Key takeaways
- The TTF contract reached €87.44 per megawatt-hour, its highest level since late 2022.
- By midday, the contract had fallen to €84.37 as traders took profits.
- Dutch gas storage was about 64% full, while German storage was nearly 60% full.
European gas prices pulled back after the benchmark TTF contract briefly reached €87.44 per megawatt-hour, its highest level since late 2022. By midday, it was trading at €84.37 as traders took profits after the recent rally.
The contract has risen about 16% since the start of the month, according to finanzen.net. The outlet cited Iranian attacks on commercial ships in the Strait of Hormuz and efforts to refill European gas storage ahead of winter as factors driving prices higher.
NOS also reported attacks by Iran and Yemen’s Houthi movement on refineries and liquefied natural gas infrastructure in the Middle East. It said the European wholesale price briefly exceeded €87 per megawatt-hour earlier in the morning.
Storage levels remain below recent benchmarks. Dutch underground reserves were about 64% full, NOS reported. German storage was nearly 60% full, below the seasonal five-year average of 87%, according to finanzen.net.
Tamas Varga, an analyst at PVM Oil Associates, said disruptions to LNG supplies through the Strait of Hormuz point to a tense winter. He does not expect shortages, but said prices could remain elevated, especially if winter is cold. Dutch price comparison sites expect households to pay more for gas.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
