European Natural Gas Tops 100 Euros for First Time in 4 Years, Triples Pre-Iran War Level

As energy supply disruptions in the Middle East persist, European natural gas prices have surged to their highest level in nearly four years. With gas reserves across Europe well below typical levels ahead of winter, upward pressure on prices is mounting.

AFP-Yonhap

According to Bloomberg and other outlets on October 28 local time, the front-month Dutch TTF natural gas futures contract, the benchmark for European natural gas prices, rose more than 4% intraday from the previous session to 100.9 euros per MWh. TTF futures have not exceeded 100 euros since December 2022, when Europe faced an energy crisis following Russia's invasion of Ukraine.

As recently as February, just before the Iran war broke out, European natural gas prices were trading at around 30 euros per MWh, but have since surged more than threefold. With disruptions to liquefied natural gas (LNG) supplies from the Middle East continuing, competition among European countries to replenish reserves ahead of winter heating demand is driving prices higher. The possibility of a renewed U.S. attack on Iran and the European Union's (EU) full ban on Russian natural gas imports, scheduled to take effect next January, are also adding to market uncertainty.

According to the EU Agency for the Cooperation of Energy Regulators (ACER), as of October 21, natural gas reserves in EU member states stood at just 75% of total storage capacity. This is well below the EU's target of 90% by November 1.

Market observers expect European natural gas prices to remain elevated for at least another year. Even if the Iran war ends soon or this winter is milder than expected, it will take considerable time to replenish gas inventories, which have fallen sharply.

This content was produced with the assistance of AI translation services.