EU Gas Prices Resume Climb Amid Winter Storage Deficits

European and British wholesale natural gas prices have rebounded, increasing by 2.7% and 2.5%, respectively, as winter storage deficits and ECB rate hikes continue to drive up energy costs.

The benchmark price has surpassed 82 euros per megawatt-hour (MWh), while the equivalent in Great Britain reached 203 pence per therm, pushing further into multi-year peak territory.

Low storage reserves across Europe are leaving the continent vulnerable to winter shocks, with underground storage caverns currently sitting at around 68% of capacity, trailing the five-year seasonal average by approximately 16 percentage points.

The surge in natural gas prices has emerged as a major driver of euro zone inflation, prompting warnings from ECB policymakers that the bank will act decisively if persistent energy shocks push medium-term inflation further above its 2% target.