European Natural Gas Prices Headed for Multi-Year Highs
Benchmark Dutch TTF futures are near early 2023 highs as storage stays below seasonal norms and analysts warn winter supply remains tight.
- On Monday, European benchmark gas prices remained elevated as storage reached 73.1% on Oct. 7, exceeding earlier expectations that Europe might fail to reach 70% before winter.
- Disruptions on the Strait of Hormuz trapped almost 20% of global liquefied natural gas exports destined for Asia, driving the more than 150% jump in European benchmark gas prices this year.
- Citi analyst Maggie Xueting Lin identified three factors easing the balance: industrial demand destruction, warm weather, and Ukraine's role as net exporter, with demand falling about 8% year over year in September.
- Germany's Verivox reported gas tariffs for new customers have already risen 55% this year, while Britain's price cap on household energy bills could rise another 16% in January.
- Market normalization to pre-conflict levels won't come until 2028, according to BNP Paribas commodities analyst Jason Ying, who noted it will take time given ongoing disruptions.
17 Articles
17 Articles
Britons could face another year of sky-high gas prices as global conflict rages on
Britain could face another year of high gas prices as global conflict wreaks havoc on European supplies, analysts have warned. Even a mild winter and an end to the Iran war might not be enough to return costs to pre-conflict levels, according to forecasters. European benchmark gas prices have jumped more than 150 per cent this year, largely because of the Gulf turmoil.Disruption on the Strait of Hormuz has choked off liquified natural gas bound …
Europe faces at least another year of high natural gas prices, even if the conflict between the United States and Iran ends and the winter turns out to be mild. The reason is record low stocks that will have to be replenished next season. European gas benchmark prices have risen by more than 150 percent since the beginning of the year. Disruptions to shipping through the Strait of Hormuz have blocked almost 20 percent of global liquefied natural…
Europe set for another year of high gas prices as reserves hit lows
European Natural Gas Prices Headed for Multi-Year Highs
Europe's main natural gas price benchmark is headed for multi-year highs despite the "energy ceasefire" reported between Russia and Ukraine over the weekend and improving Strait of Hormuz energy flows. Europe is heading into the Northern Hemisphere winter without Qatari LNG exports and with storage levels well below 15-year lows. Dutch TTF futures trade around 83 euros per megawatt-hour, the highest level since early 2023. The September pullback…
At the beginning of the new trade week, the value of the November natural gas futures in the TTF index showed small growth and was fixed close to $950 per thousand cubic metres. The November TTF index of the largest European distribution centre, TTF, was opened at $951. By 10:22, the value was $950.8 per thousand cubic metres, adding 0.7 per cent to the estimated price of the previous day to RIA News, with reference to the London ICE stock marke…
Gas prices in Europe are at their highest in almost four years. Prices on the Amsterdam exchange are approaching €86 per MWh, and EU storage reserves are significantly lower than the five-year average. The situation is exacerbated by the conflict in the Middle East, with analysts warning of a costly winter.
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