European gas hits highest level since 2022, up 4.35%

By Gokhan Ergocun

ISTANBUL (AA) - European natural gas index (EU Gas) exceeded €100 ($111.3) per megawatt hour (MWh) threshold for the firs time since 2022.

The index rose by 4.35% as of 1530GMT to €100 per megawatt hour (MWh) while is hovering just below the €100 level currently.

Intensifying conflict in the Middle East has sharply heightened concerns over winter energy supplies, particularly as liquefied natural gas (LNG) flows from the Persian Gulf — which previously accounted for nearly a fifth of global supply.

Concerns driven up prices across crude oil, transportation fuels, natural gas, electricity and food.

Brent oil futures also raised by 2.2% to $116 per barrel and heating oil prices by 1.6% to $4.8 per gallon.

Markets expect natural gas prices to remain elevated for at least another year even if the conflict ends and winter weather stays mild, as Europe must replenish storage levels that have fallen to record lows.

Surging wholesale natural gas costs are increasingly passing through to household and industrial energy bills, as gas-fired power plants generally determine electricity prices during peak demand hours.

Gökhan Ergöçün