European gas prices hit a four-year high on winter supply fears

LONDON (Oct. 27) — European wholesale natural gas prices climbed Monday to levels not seen since late 2022, as cooler weather raised heating demand and traders priced in further Middle East supply risk, The Guardian and DPA reported.

The Dutch Title Transfer Facility benchmark for month-ahead delivery rose to €97.64 a megawatt-hour on the Amsterdam exchange, nearly 3% above Friday and the highest since late 2022, according to DPA via Yahoo Finance. The Guardian put the wholesale peak at €97 a megawatt-hour. The UK's month-ahead contract rose about 4% to 240p a therm, its highest since December 2022, The Guardian said.

Prices have risen roughly a third since the start of October and more than tripled since the start of the year, DPA reported. A main driver is disrupted liquefied natural gas shipping through the Strait of Hormuz amid the Iran conflict, which has effectively halted traffic on a key LNG route, DPA said. Reports of possible U.S.-Israeli strike planning after the U.S. midterms also weighed on energy markets last week, The Guardian reported; Brent crude was near $115 a barrel after a pullback Monday.

European gas storage is about 75% full against a seasonal average closer to 80%, The Guardian said, citing a slowdown in Qatari exports and higher summer cooling demand. Germany's storage stood above 61%, below last year's roughly 75% at the same point, DPA reported. British households face a projected 16% rise in January dual-fuel bills to about £2,000 a year for a typical home, The Guardian said, citing energy forecasts.