European natural gas prices rose to 97 euros (108 U.S. dollars) per megawatt-hour on Monday, hitting their highest level since December 2022, driven by tight winter energy supplies and the ongoing conflict in the Middle East.
Before the outbreak of the war in Iran in February this year, European gas prices were around 32 euros (36 U.S. dollars) per megawatt-hour. At the beginning of this month, prices were still below 75 euros (84 U.S. dollars).
Meanwhile, Europe's gas storage is also under pressure. Currently, the inventory rate of European gas storage facilities stands at about 75 percent, below the seasonal average of around 80 percent for the same period. This marks the lowest level for this time of year since records began in 2009.
As temperatures across the continent drop, the market expects heating demand in Europe to increase significantly in the coming days.
European gas prices hit highest level since December 2022
European gas prices hit highest level since December 2022
