European gas prices hit four-year high over winter supply fears

Summarised from The Guardian's report · Updated 26 Oct, 12:14 · Archive

European wholesale gas prices have reached their highest level since 2022, driven by winter demand and Middle East tensions.

European gas prices have jumped to their highest levels since 2022, with wholesale prices hitting €97 per megawatt-hour on Monday. The Guardian reports that the spike has been driven by falling temperatures across Europe increasing demand for heating, combined with fears of further supply disruptions in the Middle East. Reports of US-Israeli plans for renewed strikes against Iran after the US midterm elections have particularly unsettled traders.

The UK's month-ahead gas contract rose 4 per cent to 240p a therm, its highest level since December 2022. Europe is also facing a shortage of stored gas reserves heading into winter, with stores at their lowest level in more than a decade owing to a slowdown in exports from Qatar and increased summer consumption. European storage is now about 75 per cent full, against a seasonal average closer to 80 per cent. Britain's energy regulators have said the country is expected to pay some of the highest energy costs in Europe this winter, as the UK relies on imports and has some of the smallest gas stores in Europe after decades of depending on North Sea production.

Read the report

• European gas prices soar to four-year high over winter supply fearsJump fuelled by fears of further Middle East supply disruptions amid reports of US-Israeli plans to strike Iran European gas prices have jumped to levels not seen since 2022 as fears continue to grow around the continent’s supply this winter and ongoing conflict in the Middle East. Wholesale gas prices hit €97 (£81) per megawatt-hour on Monday, as temperatures across Europe fell and traders priced in stronger demand for heating. Continue reading...The Guardian · 26 Oct, 10:35

In this story: Europe · Middle East · United States · Israel · Iran · United Kingdom · Qatar · North Sea

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