FX.co ★ European Gas Advances Amid Supply Concerns

European natural gas prices climbed back above €81/MWh on Wednesday, rebounding from the previous session’s decline and nearing the elevated levels last seen in 2022. The move reflects persistent supply concerns ahead of the winter heating season.

Heightened military tensions have rendered the Strait of Hormuz largely inaccessible to commercial shipping, sharply curbing Qatari LNG export flows and constraining supplies to Europe. Meanwhile, European gas storage sites are only about 68% full, below the seasonal norm at a point in the year when inventories would typically be close to maximum capacity.

Worries over supply security were underscored by JERA Global CEO Yukio Kani, who cautioned that Europe’s relatively low stock levels leave the region exposed to prolonged disruptions and more intense competition for LNG cargoes. In parallel, scheduled maintenance at Norwegian gas facilities is temporarily reducing pipeline deliveries to Europe, further tightening short‑term supply conditions.