FX.co ★ European Natural Gas Hovers Near Peak Levels

European natural gas prices eased to €98 per megawatt-hour on Thursday, after briefly touching €100 in the previous session—the highest level since December 2022. The recent surge has been driven by rising heating demand, low gas inventories across the continent, and mounting concerns over a renewed escalation of conflict in the Middle East. Prices have more than tripled since the onset of the war, as disruptions to shipments through the Strait of Hormuz have curtailed LNG deliveries from several suppliers, particularly Qatar. This disruption has forced the region to scramble for alternative sources and hindered efforts to replenish storage during the summer. As of October 28, European gas storage facilities were around 75% full, well below typical levels for this time of year. Looking ahead, forecasts of colder weather across northwestern Europe in the coming days are expected to lift heating demand further, while potential cold spells in parts of Asia could intensify competition for available LNG cargoes.