European Gas Price Hits €70 Amid Gulf Disruption
The European benchmark Dutch TTF gas price surged past €70 per megawatt-hour on Monday, marking its highest level since March.
This jump is attributed to uncertainty over liquefied natural gas (LNG) supplies from the Gulf, following a US-Iran conflict that has effectively closed the Strait of Hormuz. The Strait accounts for roughly one-fifth of global LNG trade.
The disruption comes at a critical time as Europe refills its gas storage facilities ahead of winter. EU gas storage facilities are currently 64.7% full, which is below historical levels for this time of year.
Netherlands and Germany are particularly concerned about meeting their gas-storage targets of 80% and 70%, respectively, by November 1. The spread between current and winter prices has often been too narrow to cover the cost and risk of storing gas.