European Natural Gas Hits Four-Year High as Winter Supply Fears Mount

Europe's benchmark natural gas price rose 2.1% to as much as $107.40 per megawatt-hour at the Dutch Title Transfer Facility on Monday, its highest level since 2022, extending a 7% weekly gain as the winter withdrawal season begins without a return of Qatari LNG flows. EU storage sites were 74.62% full as of October 25, well below the five-year average of about 86% for this time of year, according to Gas Infrastructure Europe. Several EU countries have started drawing down inventories amid lower temperatures. European inventories stand at roughly 845 TWh, about 100 TWh below year-ago levels, Saxo Bank's Ole Hansen said, a shortfall equivalent to the energy carried by more than 80 large LNG carriers. Middle East disruptions have cut most Persian Gulf LNG flows, with Qatari cargoes slowed to a trickle over the past seven months, leaving Europe and Asia competing for alternative spot supply.