Europe’s gas prices climbed to their highest level since the Iran war began, as colder weather forecasts met unusually low storage levels.
Dutch TTF futures reached €86.50 per megawatt-hour, extending gains for a sixth consecutive day, the Financial Times reported.
European storage facilities were less than 74% full, compared with normal levels of approximately 90% for this time of year. Forecasts of colder temperatures and weaker wind generation added to concerns about heating and electricity demand.
The market remains exposed to disruptions in Gulf energy shipments and competition with Asian buyers for available liquefied natural gas.
The broader vulnerability is examined in Trump Says US Is Independent From Middle East. Markets Say Otherwise.
Higher wholesale prices can increase costs for utilities and manufacturers, although household bills depend on contracts, hedging and national pricing arrangements.
Europe’s winter risk depends on both incoming supplies and how quickly cold weather draws down its reserves.
Disclosure: This article does not represent investment advice. The content is for informational and educational purposes only.
