European Natural Gas Prices Remain High Amid Geopolitical Tensions

The price of natural gas in European exchanges remains high due to several factors. According to Energocom, geopolitical tensions in the Middle East are a significant influence on prices. The risks associated with transporting gas through the Strait of Hormuz remain high, but indications of a possible gradual reopening of maritime routes have eased some pressure.

The level of European storage reserves is also a concern. Storage facilities in the EU are approximately 69% full, which is lower than the average of almost 85% over the past five years. Germany's storage levels stand at around 56%, making the market sensitive ahead of the cold season.

Fluctuations in liquefied natural gas (LNG) flows to Europe and reduced supply from Norway are also contributing to high prices. The competition for available cargoes, particularly with Asia, is another factor. Despite falling oil prices and diplomatic signals from the region, price corrections have been limited.