Gas prices in Europe reach €97 per MWh — The Guardian

Wholesale gas prices in Europe rose to €97 per megawatt-hour on Monday, the highest level since 2022. The increase came amid falling temperatures, an expected rise in heating demand and concerns over winter supplies, The Guardian reports.

Gas demand and reserves

European gas storage facilities are currently around 75% full, compared with a seasonal average of about 80%. The publication notes that storage levels are at their lowest in more than a decade due to slower exports from Qatar and increased consumption during the summer for cooling premises.

In the United Kingdom, the contract for gas delivery next month rose by 4% to 240 pence per therm. This is the highest figure since December 2022. British energy regulators had warned that this winter the country could face some of the highest energy costs in Europe because of its dependence on imports.

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Tensions in the Middle East

The price surge also came amid concerns about new supply disruptions from the Middle East. They intensified following reports of possible plans by the United States and Israel to launch new strikes on Iran after the US midterm elections.

Against this backdrop, oil rose to $117 per barrel on Friday. On Monday, the price of international benchmark Brent fell by about 2%, but remained above $114 per barrel.

UK costs

According to the Office for National Statistics, in the year to August, the United Kingdom spent a record £4 billion on electricity imports. About half of this amount was for supplies from France. At the same time, typical annual energy bills for British households in January are forecast to rise by 16%, to about £2,000.