European Gas Prices Under Pressure as Storage Gap Widens

European gas prices remain elevated due to low storage levels and suspended LNG exports from Qatar. Commerzbank warns that the TTF benchmark price could sustainably exceed EUR 65 per MWh if the storage gap widens further.

Gas storage levels across the EU are at just over 61%, marking the lowest seasonal level since 2009. In Germany, storage levels are significantly lower, at roughly 50%, which is 27 percentage points below the five-year average.

The bank cautions that European LNG imports would have to increase substantially to achieve sufficient gas storage levels by the end of March next year. Additionally, ongoing Middle East tensions could lead to increased competition for available LNG shipments with Asia.