Quick Bite | European Gas Prices on the March

European natural gas prices peaked back in August 2022, however, the devasting conflict in the Middle East has caused gas futures in Europe to surge +40% over the past week, the highest level recorded in eight months.

While European stockpiles remain high, and demand is still weak, the market is concerned about the potential implications to supply with the risk of escalating geopolitical tensions and ongoing strikes at LNG facilities in Australia.

What does this mean for gas prices?

While we don’t see natural gas prices retesting the 2022 highs, it is plausible that with a fast-approaching winter in the northern hemisphere, anticipated colder temperatures should lead to an increase in natural gas demand for heating purposes, likely putting upward pressure on prices.

Source: Trading Economics

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