Europe's benchmark natural gas contract briefly touched €100 per megawatt hour (MWh) on Wednesday as disruptions to Middle East shipping of liquefied natural gas keep supply tight ahead of winter and consumers and industry
Europe's benchmark natural gas contract briefly touched €100 per megawatt hour (MWh) on Wednesday as disruptions to Middle East shipping of liquefied natural gas keep supply tight ahead of winter and consumers and industry feel the pinch from high energy prices.
Prices have been rising to 2022 highs as the conflict in the Middle East has escalated, and are now trading at around triple pre-Iran war levels.
The US-led war on Iran has raised costs for oil, transport fuels, gas, electricity and food. Analysts and industry forecasters foresee at least another year of high gas prices even if the war is resolved and winter proves mild, as Europe will need to restock gas storage reserves depleted to record lows.
The Dutch front-month contract at the TTF hub briefly traded at €100 per MWh at around 1335 GMT, up around 4% from the previous session, data from the Intercontinental Exchange showed.
High wholesale gas prices are filtering through to consumer and industry gas and power bills, with natural gas-fired plants typically setting the price for electricity during the periods of highest demand. The German front-year baseload contract rose 1.7% to 159.30/MWh, the highest since June 2023 while the French equivalent was
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