European natural gas prices rose to €86 per megawatt-hour on Tuesday, the highest level since December 2022, as worries over tight supplies and below-average storage levels intensified ahead of winter. Storage sites across Europe are currently 73.75% full, leaving inventories significantly lower than is typical for this point in the year.
Forecasts for colder weather in northwestern Europe from next weekend are expected to boost heating demand, adding further pressure to already constrained reserves. With storage levels lagging previous years, the market remains highly vulnerable to abrupt temperature shifts or unexpected supply disruptions.
Stronger European demand could also heighten competition for liquefied natural gas (LNG) cargoes on the global market. At the same time, rising tensions in the Middle East have pushed North Asian LNG prices to nearly three times their pre-conflict levels, intensifying the battle between Asian and European buyers for available shipments.
