European Gas Prices Soar as Storage Levels Hit 15-Year Low

European gas prices have surged to four-month highs, fueled by supply fears and the ongoing Middle East conflict. The Dutch TTF front-month contract rose 0.4%, while the British equivalent gained 0.3%. This marks a fourth consecutive week of gains, the longest streak since May last year.

Equinor, Europe's largest domestic gas supplier, warned that storage levels across the continent stand at around 54% capacity, below the five-year seasonal average and the second-lowest reading in 15 years. The company's chief executive stated that Europe is unlikely to reach its target of filling underground storage to 80% before the start of the heating season.

The conflict between the US and Iran has disrupted tanker routes through the Strait of Hormuz, cutting off a portion of global LNG flows from the Persian Gulf. Asian buyers have been outbidding European utilities for available LNG cargoes, pulling shipments away from European import terminals at a time when the continent can least afford it.