European Gas Prices Hit One-Month Low Amid Winter Supply Worries

European natural gas prices have hit a one-month low of €69 per megawatt-hour, causing traders to reevaluate their strategies ahead of winter. Despite this decline, prices are still up about 60% in the third quarter, reflecting ongoing supply concerns.

The bloc's storage facilities are only around 71% full, which is well below the five-year seasonal average of 87%. Germany's sites are even more strained, with storage levels at just above 57%.

Disruptions to liquefied natural gas (LNG) shipments continue to pose a risk to European imports. QatarEnergy has extended its force majeure on LNG supplies to Italy's Edison until December, while Pakistan's supply arrangements have been extended into November due to ongoing shipping issues.