European Natural Gas Prices Rise Amid Cold Snap and Supply Woes

The rise in prices follows a weekly decline of 3.4% and comes at a time when European gas storage levels are under scrutiny. Although storage is currently above average, it is not sufficient to meet the continent’s winter demands, raising fears of supply shortages. Ongoing conflicts in the Middle East, particularly between Israel and Hezbollah, threaten offshore gas fields that are crucial for supplying gas to Israel and neighboring countries. Additionally, tensions in Ukraine, especially around the gas transit deal that is set to expire at the end of the year, further exacerbate uncertainties in the market. Maintenance work in Norwegian facilities is also expected to limit gas supplies in the short term, contributing to the upward pressure on prices as colder temperatures are anticipated across Europe.