Europe gas prices firm as geopolitical tension and pre-winter demand add support
UNG•Dutch and British wholesale gas prices rose slightly on Tuesday, extending four-year highs as competition for LNG cargoes and efforts to fill European storage supported prices. European gas storage was 74.58% full, while Asia’s benchmark LNG price topped $30 per mmBtu on Monday for the first time since December 2022.
1. Prices remain elevated
The Dutch front-month gas contract rose €1.31 to €89.35 per megawatt hour, while the British front-month contract gained 3.47 pence to 220.93 pence per therm. Both benchmarks extended four-year highs reached on Monday.
2. Geopolitical and storage pressures
Analysts cited Middle East tensions and competition for LNG cargoes as support for prices. European storage was 74.58% full, below historical levels for this point in the year, but increased by an average of 1.2 terawatt hours per day over the past week. Norwegian gas exports were nominated at 337.9 million cubic metres per day, little changed from Monday.
