European Natural Gas Prices Surge Past 80 Euros per MWh

European natural gas prices have surpassed 80 euros per megawatt-hour (MWh) for the first time since January 2023, during the early stages of the war in Ukraine. This marks a significant increase from the previous session, with Dutch TTF futures rising up to 80.99 euros before narrowing gains to around 79.32 euros by approximately 4:43 PM.

The upward pressure on prices is attributed to disruptions in Qatari gas shipments following the escalation of the Middle East conflict and drone attacks targeting the Yamal region, a hub for Russia's gas industry. Despite Russian gas supplies to Europe plummeting since the war in Ukraine, Yamal liquefied natural gas (LNG) still accounts for 5 percent of Europe's demand.

Benchmark British gas prices also climbed to 2 pounds per therm, reaching their highest level since December 2022, before retreating slightly. This surge is more than double the level recorded just before the outbreak of the war involving Iran.