Natural gas prices in Europe exceeded 90 euros for the first time since 2022

Dutch benchmark futures prices increased by 2.4 percent to 90.14 euros per megawatt-hour. Prices above 90 euros were the highest since December 2022 and are nearly three times the level before the Iran war. Although prices remain well below the peak levels of the last energy crisis, this recent increase is putting pressure on consumers and industry. Governments have so far avoided returning to costly price caps and tax cuts, with tight budgets and high borrowing costs making them reluctant to launch a new round of energy support.

LNG demand from Asia paves the way for a more intense bidding war with the onset of cold weather. Gas storage facilities in Europe are approximately 75 percent full. This rate is the lowest level of the season in records dating back to 2009. The situation is even more serious in Germany, which hosts the largest storage facilities in the region, and the occupancy rate is just over 61 percent.