FX.co ★ European Gas Prices Hover at 2022 Highs

European natural gas prices hovered above €82/MWh on Tuesday, their highest level since late 2022, as disruptions around the Strait of Hormuz intensified and gas inventories remained unusually low. The strait is still closed to most commercial traffic amid ongoing military conflict and security threats, while diplomatic efforts to reopen the route have stalled, heightening fears that shipping disruptions could be prolonged. As a result, LNG tanker traffic through the Strait has dropped sharply, tightening global supply and intensifying competition with Asian and other buyers for the remaining available cargoes. At the same time, ongoing maintenance at Norwegian gas facilities is further clouding Europe’s winter supply outlook. Gas storage sites across Europe are currently around 68% full, roughly 17 percentage points below the seasonal norm, when inventories would typically be close to maximum capacity.