Gas prices in Europe rise to nearly €90 per MWh — OilPrice

European natural gas prices rose to nearly €90 per megawatt-hour on Thursday amid escalation in the Middle East and concerns over winter supplies. As OilPrice reports, the price of the front-month contract at the Dutch Title Transfer Facility (TTF) hub, the benchmark for the European gas market, had increased by 2.7% as of 9:00 a.m. Amsterdam time.

Highest level since December 2022

The price of gas stood at €89.76, or $100.84, per MWh. This is equivalent to approximately $29.50 per million British thermal units. According to the publication, this level is the highest since December 2022, when Europe entered its first winter without most supplies of Russian pipeline gas.

Gas quotations rose alongside oil prices. Early on Thursday, Brent reached a five-month high of $112 per barrel. OilPrice notes that markets reacted to the escalation of the conflict between Saudi Arabia and the Houthis, as well as Iran's statement about the alleged striking of several oil tankers carrying out transshipment operations in the Persian Gulf.

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EU gas reserves are below average

Gas storage facilities in the EU were 74% full as of October 21, according to Gas Infrastructure Europe data. This is below the five-year average of around 86% for this period ahead of the heating season.

Saxo Bank Head of Commodity Strategy Ole Hansen noted that lower reserves make Europe more dependent on uninterrupted imports during the winter. In his view, a prolonged cold spell combined with new disruptions to liquefied natural gas supplies could trigger another sharp increase in prices.

Consulting company Timera Energy, in its forecast for winter 2026/27, also pointed to the risk of a price spike at the end of the season if European reserves decline. Its scenario envisages the closure of the Strait of Hormuz by the end of 2026 and a gradual restoration of its operation in the first quarter of 2027.