Europe gas prices rise on low storage, cooler weather
UNG•Dutch and British gas prices rose as cooler weather forecasts and low inventories lifted prices, with the Dutch front-month contract reaching €86.34 per MWh. European gas storage was 73.75% full, while analysts expected prices to trade in a narrow range.
1. Prices rise in Europe
Dutch and British front-month gas prices rose on Tuesday morning as forecasts pointed to cooler weather and European inventories remained low. The Dutch contract gained €1.98 to €86.34 per megawatt hour, its highest level since December 23, 2022; the British contract rose 5.10 pence to 214.82 pence per therm.
2. Storage and supply
European gas storage was 73.75% full, below usual levels for this time of year. Forecasts indicated a cold snap in northwest Europe from the following weekend that could raise heating demand. Norwegian flows to the Continent recovered slightly after maintenance at Gullfaks ended, and analysts expected prices to trade in a narrow range on stable demand and improved supply.
3. LNG competition
Middle East tensions pushed North Asian LNG prices to nearly three times their pre-conflict levels, increasing competition with Europe for limited cargoes. ANZ senior commodity strategist Daniel Hynes said stronger European demand would force buyers to compete for increasingly scarce LNG supplies.
