European Gas Prices Hit Highest Level Since 2023 Amid Supply Tensions

The European TTF gas futures contract, a benchmark for the continent's gas market, reached a high of €75.33/MWh on Wednesday, its highest level since January 2023.

This surge comes as European gas reserves remain below average levels, with only 65.39% of storage capacity filled as of September 1, according to Gas Infrastructure Europe.

The low reserves and replenishment timeline have made the market sensitive to supply tensions, particularly in the liquefied natural gas (LNG) market.

European buyers are preparing for a ban on Russian LNG imports set to take effect in January 2027, as part of the phasing out of Russian gas.