European gas price breaks above 101 euros, highest since 2022
Dutch TTF front-month gas jumped 4% to 101.82 euros ($114) per megawatt-hour, its first move above 100 euros since the 2022 energy crisis, as low storage and Gulf supply risks weigh on the market.
The contract was heading for an 8% weekly rise, with traders citing fears that tensions in the Middle East could further restrict liquefied natural gas (LNG) shipments from Qatar and the United Arab Emirates through the Strait of Hormuz.
EU gas inventories stood at 74.89% of capacity on October 29, according to Gas Infrastructure Europe, well below the five-year seasonal average of roughly 86%. With colder weather arriving and withdrawals already underway in several countries, storage levels are expected to keep falling through the winter rather than rebuild.
Adding to the strain, QatarEnergy this week extended its force majeure on LNG deliveries until the end of the year, removing some contracted supply from both European and Asian buyers during peak demand season.
Warren Patterson, Head of Commodities Strategy at ING, said the market had found little reassurance on near-term Gulf LNG flows, warning that the situation could worsen “amid the risk of renewed US strikes on Iran” after next week’s US midterm elections. He added that unplanned outages in Norway were compounding Europe’s supply worries alongside the prolonged Qatari disruption.
Why it matters for markets: Tighter European gas supply and below-average storage can lift electricity and industrial costs across the eurozone, feeding into inflation expectations and weighing on the euro. Sustained pressure on TTF prices also tends to spill over into broader energy markets, including Brent crude and LNG-linked contracts in Asia.
Source: OilPrice.com