European natural gas prices surged to €97 per megawatt-hour on Monday, marking the highest level since 2022. The spike came as traders braced for increased heating demand across the continent amid forecasts of dropping temperatures. The benchmark futures saw a jump of as much as 4% before retreating slightly.
The price surge reflects growing concerns over the region's fragile gas supply balance heading into winter. Tight global supplies and potential bidding wars with other major buyers, such as Asia, are adding to the pressure. The ongoing Middle East conflict is also contributing to market uncertainty.
Traders anticipate an uptick in heating demand in the coming days, which could further strain supplies. The combination of lower temperatures and limited availability is setting the stage for volatile price movements in the near term.