European Gas Prices Above €60/MWh Amid Middle East Risks and LNG Supply Concerns

European natural gas prices have remained above €60 per megawatt-hour (MWh) due to ongoing Middle East geopolitical risks and concerns over liquefied natural gas (LNG) supplies. The benchmark August contract at the Dutch Title Transfer Facility (TTF), Europe's most liquid virtual natural gas trading hub, traded at €60.42 per MWh on Thursday.

The persistent security risks in the region have kept uncertainty alive about potential supply disruptions, despite the recent passage of an LNG tanker from Qatar through the Strait of Hormuz and its resumed export route.

The slower-than-expected pace of refilling Europe's natural gas storage facilities ahead of winter has also contributed to higher prices. Natural gas storage facilities across the European Union are currently around 56% full, raising concerns that inventories may not reach targeted levels before the winter heating season.