Europe Gas Hits Three-Year High as Traders Race to Fill Storage
European natural gas prices reached a three-year high as traders rushed to fill storage ahead of winter, with benchmark futures rising as much as 3.4% to the highest since January 2023. Storage is only 67% full compared to a seasonal norm of 83%, and Germany's sites are around half full. The price surge is partly driven by uncertainty over US response to strikes on Iranian tankers and the risk of ship attacks, while an LNG tanker from Qatar has sailed through the Strait of Hormuz, signaling a possible resumption of flows.
Why it matters: This highlights the theme of energy security, as Europe's dependence on seaborne LNG and low inventories expose it to supply shocks and price volatility.