European Gas Prices Hit Near-Record Highs Amid Heat Wave

Natural gas prices in Europe are nearing record highs due to an abnormal heat wave. The benchmark TTF futures contract rose above €62 per megawatt-hour, approaching its peak of €63 per MWh set on July 24.

The heat wave is driving up demand for electricity and increasing the load on gas-fired power plants, which are already suffering from high temperatures. In addition, river water levels have dropped to critical levels, forcing nuclear and coal-fired power plants to reduce output.

Analysts note that even minor market imbalances are causing sharp price spikes due to low European storage levels and limited global supplies of liquefied natural gas (LNG).