European Natural Gas Prices Rise as Supply Risks Persist

European natural gas prices rose by 2.5% on a weekly basis due to low storage levels and supply risks, despite higher US LNG exports and weaker Asian demand.

The price of natural gas at the Dutch-based Title Transfer Facility (TTF), Europe's benchmark gas trading hub, reached €73.70 per megawatt-hour on Friday, up from last Friday's close of €71.89 for November-delivery contracts.

Gas storage facilities in European Union countries were 71.5% full as of now, down from 82.6% in the same period last year. The EU had required gas storage facilities to be filled to 90% by Nov. 1 following the energy crisis triggered by the Russia-Ukraine war.

Low storage levels and supply disruptions, such as the prospect of renewed US military action against Iran affecting LNG flows through the Strait of Hormuz, are supporting prices. However, higher US LNG exports, which rose to 10.9 million tonnes in September, eased some supply concerns.