European gas prices hit highest level in 4 years

Pars Today – According to data from the London-based Intercontinental Exchange (ICE), European natural gas prices reached $1,000 per 1,000 cubic metres for the first time since September, hitting their highest level since 2022.

According to Pars Today, citing IRNA, November natural gas futures at the Dutch Title Transfer Facility (TTF), a major gas trading hub, surged to around $1,003 per 1,000 cubic metres.

Spot gas prices at major European trading hubs are also now above $1,000 per 1,000 cubic metres.

European gas prices are rising sharply amid an unprecedented decline in gas storage levels ahead of winter and the ongoing conflict in West Asia.

Reuters also reported that European households and industries would face high gas prices for at least another year. Even if the war against Iran is resolved and the continent experiences a mild winter, Europe will need to replenish its gas reserves, which have now fallen to their lowest levels.

European benchmark gas prices have risen by more than 150% this year. One factor has been shipping disruptions in the Strait of Hormuz, caused by the US war against Iran, which have disrupted nearly 20% of global liquefied natural gas (LNG) exports from Qatar and the UAE, most of which are destined for Asia.

While some countries, including the United States, Canada and Nigeria, have increased their gas exports, disruptions to gas shipments from West Asia have intensified competition for new cargoes and hampered Europe's efforts to replenish its storage facilities over the summer.