European natural gas prices climbed to €87 per megawatt-hour on Wednesday, rebounding toward multi‑year highs after falling more than 3% in the previous session, as traders digested conflicting signals over diplomatic efforts to end the war in the Middle East.
Tuesday’s pullback had been driven by unconfirmed reports that Qatar and Pakistan had put forward a new proposal to revive peace talks. However, a diplomat involved in the negotiations later said that speculation about an imminent agreement was inaccurate.
Even after the brief decline, European gas prices remain more than twice their pre‑war levels, reflecting continuing disruptions to LNG shipments from the Persian Gulf and unusually low stockpiles. As of October 20, European gas storage sites were 74.62% full, the lowest level for this time of year since records began in 2009.
The situation is especially worrying in Germany, the region’s largest economy, where storage levels are only just above 61%. Strong LNG demand from Asia further heightens the risk of fiercer competition for cargoes as colder weather sets in.