EU Natural Gas Prices Near Multi-Year Highs Amid Storage Gains

Europe's main natural gas price benchmark is approaching multi-year highs, driven by tight supply conditions and low storage levels ahead of winter. While the energy ceasefire between Russia and Ukraine and improved flows through the Strait of Hormuz have eased some concerns, the region is still facing a significant gas shortage. Dutch TTF futures have climbed to around 83 euros per megawatt-hour, the highest since early 2023, with prices rebounding quickly from a September dip to 70 euros. Analysts note that Europe is filling storage at a faster-than-expected rate, with levels now at 73% full, surpassing earlier expectations of not reaching 70% before winter. However, this is still well below the 15-year average of 90%.