European Natural Gas Prices Climb to Highest Since Late 2022 as Market Supply Tightens

Deep News10-13

With the conflict in the Middle East continuing, the supply outlook for the coming months has been cast under a shadow, pushing European natural gas prices to their highest level since December 2022.

Benchmark natural gas futures rose for a sixth consecutive day, bringing their cumulative gain so far this month to more than 18%.

The latest round of escalation, including attacks on Saudi Arabia by Iran-backed Houthi forces, indicates that energy supply from the Middle East still faces persistent uncertainty as temperatures are about to drop.

A brief cold snap next week could become the first test for Europe's energy market.

During Europe's heating season, natural gas usage typically doubles.

If energy supply from the Middle East cannot be restored, Europe may have to compete even more fiercely for supply, given that the continent's fuel inventories are at seasonally low levels.

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