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European Gas Prices Jump 20% to Half-Year High on Cold Snap

Low storage levels have heightened the market's vulnerability.

Overview

  • TTF front-month futures traded near €34.30 per MWh in Amsterdam, the highest since August and the sharpest weekly rise since October 2023.
  • European gas storage stands at about 52% full versus a seasonal norm near 67%, underscoring reduced winter resilience.
  • Forecasts point to a late-January cold spell that could prolong heavier-than-usual withdrawals from reserves.
  • Heightened tensions linked to Iran, including U.S. threats of 25% tariffs on its trading partners and Iran’s role in supplying Turkey, are intensifying supply risks.
  • Stronger LNG demand from China is tightening global competition for cargoes, adding upward pressure to European prices.