European Gas Prices Pull Back After Reaching 2023 Highs
Natural gas prices in Europe and Britain dropped modestly on Tuesday after reaching fresh 2023 highs. The Dutch front-month TTF benchmark contract fell 0.7% to approximately 82.80 euros per megawatt-hour, holding just beneath Monday's peak of 83.40 euros.
The comparable NBP wholesale gas contract in Great Britain also dropped 0.7% to 200.10 pence per therm, staying well above the 200-pence level after reaching multi-year highs in earlier sessions.
Despite the slight retreat on Tuesday, wholesale gas curves continue to be supported by a substantial risk premium stemming from structural supply weaknesses across continental energy infrastructure.
According to Gas Infrastructure Europe, underground storage facilities are at roughly 68% capacity, below the five-year seasonal average. Major global energy purchasers have cautioned about the vulnerability of power grids due to diminished reserves and extended shipping interruptions around the Strait of Hormuz.