European natural gas prices hit highest level in over three years

Brussels (ANTARA) - European natural gas prices surged to their highest levels in more than three years on Wednesday (9/9), as renewed tensions in the Middle East and concerns regarding liquefied natural gas (LNG) supplies added pressure to a market already facing low inventory levels ahead of the winter season.

The Dutch TTF futures for the nearest month, which serves as the European gas price benchmark, rose to 80.99 euros (1 euro = Rp20,435) per megawatt-hour during the trading session, breaking the 80-euro level for the first time since early 2023. Prices subsequently fell to around 79 euros per megawatt-hour.

The price hike occurred amidst disruptions to LNG supplies from the Middle East and fresh concerns regarding Russian gas infrastructure, which have worsened the supply outlook.

According to Gas Infrastructure Europe, which monitors gas storage levels across the region, EU gas storage facilities were 67.1 per cent full as of 8 September, significantly below the normal levels for this period.

Euronews reported that the Middle East conflict has driven up European gas prices due to increasing concerns regarding LNG supplies through the Strait of Hormuz, while rising energy costs are adding inflationary pressure to the eurozone.

The International Energy Agency (IEA) stated on Wednesday that the recent supply crisis has exposed vulnerabilities in the global gas market.

The IEA warned that competition for limited LNG supplies during periods of heavy market pressure could trigger extreme price volatility and have a significant impact on economies.