European natural gas prices climbed for the third consecutive week, rising 4% as tight supplies and colder weather heighten concerns. Benchmark futures hover near a 14-month high of €50 per megawatt-hour, with stockpiles depleting at their fastest rate since 2022’s energy crisis.
Russian gas flows through Ukraine ceased on New Year’s Day, leaving Europe more reliant on global liquefied natural gas (LNG). Underground storage levels are now 72% full, compared to 86% this time last year, intensifying challenges for next winter’s stockpiling.
“Higher demand for gas to be put into storage will keep markets elevated in the coming months,” noted Rabobank’s Florence Schmit.
An outage at Norway’s Hammerfest LNG plant, combined with limited flexibility in the global gas market, could spur further price volatility. However, analysts at Citigroup suggest prices may ease longer term if Russian flows resume, though geopolitical uncertainty remains a key factor.