European Natural Gas Prices Rise on Middle East Escalation
The front-month Dutch TTF contract, Europe's gas benchmark, was up 2.7% Thursday morning at nearly 90 euros per megawatt-hour, about $29.50 per MMBtu. That is the highest level since December 2022, Europe's first winter without most Russian pipeline gas.
The move tracked a roughly 3% jump in oil as the Saudi-Houthi conflict escalated and Iran said it had hit several tankers doing transfers in the Persian Gulf. Brent touched a five-month high of $112 a barrel early Thursday.
EU storage sites were 74% full as of Oct. 21, according to Gas Infrastructure Europe, well below the usual 86% for this point in the year. Saxo Bank's Ole Hansen warned that a long cold spell combined with new LNG disruptions could push prices sharply higher. Consultancy Timera Energy's winter outlook assumes the Strait of Hormuz stays closed through the fourth quarter.
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