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European Gas Prices Jump 20% to Six-Month High on Cold Snap, Supply Risks

Analysts warn that unusually low storage paired with a coming freeze could deepen withdrawals.

Overview

  • The Dutch TTF benchmark rose roughly 20% this week, trading at €34.30/MWh in the morning and later touching €35.31 for the highest level since August.
  • European gas storage is about 52%, well below the roughly 67% seasonal average, heightening concern over the region’s buffer.
  • Forecasts point to another cold spell late in the month that could extend and intensify withdrawals from storage.
  • U.S. threats of 25% tariffs on countries trading with Iran, a key supplier to Turkey, have increased worries over regional supply competition.
  • Stronger LNG demand from China and analyst warnings about possible shipping risks near the Strait of Hormuz are tightening global availability and supporting prices.