Europe Gas-Prices rise amid peace talks uncertainty, low storage
XLE•Carbon prices also firm
In the European carbon market, the benchmark contract CFI2Zc1 was up €0.85 at €81.71 per metric ton.
Storage concerns and weather keep support in place
Prices fell on Monday on rising optimism that the U.S. and Iran could be moving closer to reviving a Middle East deal and energy flows via the Strait of Hormuz, but there has been little actual progress.
There are conflicting signals from the United States and Iran over the status of talks to end their five-month-old war, with the latest attack on shipping in the Strait of Hormuz highlighting risks to global energy flows.
There are also growing concerns in Europe over storage levels and slow injections, leaving the region more vulnerable heading into the 2026/27 winter, said analysts at ING.
Replenishment is progressing more slowly than in 2025, added Arne Lohmann Rasmussen, chief analyst at Global Risk Management.
"Problems affecting nuclear and hydro power plants in Europe due to low water levels in several rivers could also increase demand for gas-for-power generation," he added.
EU gas storage sites were last 57.43% full, a historic low for the time of year, Gas Infrastructure Europe data showed.
"Even when Russian gas was shut off in 2022, stocks built up, but the current situation looks more like 2021, where the low inventory levels contributed to rapidly rising gas prices at the end of the year," analysts at SEB said.
This means a greater risk for high heating and electricity prices this winter, they added.
