Europe's Gas Prices May Soar to €100 as Shipping Disruptions Persist

The intense battle for natural gas supplies has intensified in Europe as Goldman Sachs analysts warn that prices may need to rise above €100 per megawatt-hour (approximately $117) by December to ensure sufficient inventories for winter demand.

Ongoing shipping disruptions in the Strait of Hormuz, a global energy chokepoint, have caused a sharp drop in energy shipments from the Middle East, intensifying competition between Europe and Asia for limited liquefied natural gas (LNG) supplies.

The benchmark European gas price, Dutch Title Transfer Facility (TTF) futures, briefly climbed to €66.79 last Friday, its highest level since March 20, double the price seen before the outbreak of conflict in the Middle East.