European natural gas prices hit highest level since December 2022
European natural gas prices rose to 97 euros (108 U.S. dollars) per megawatt-hour on Monday, reaching their highest level since December 2022. The increase was driven by tight energy supplies ahead of winter and the ongoing conflict in the Middle East.
Before the outbreak of the war in Iran in February this year, European gas prices stood at around 32 euros (36 U.S. dollars) per megawatt-hour. At the beginning of October, prices were still below 75 euros (84 U.S. dollars).
Europe's gas storage facilities are also under pressure. Current storage levels stand at approximately 75 percent, below the seasonal average of around 80 percent for the same period. This is the lowest level recorded for this time of year since records began in 2009.
As temperatures fall across the continent, market participants expect heating demand in Europe to increase significantly in the coming days.
According to CCTV+, limited gas reserves, rising seasonal demand and tensions in the Middle East are adding pressure to Europe's energy market. As winter approaches, storage levels and the stability of supplies remain key factors influencing price movements.
