TREE NEWS reports: European benchmark natural gas futures rose as much as 2% on Monday morning to their highest level since December 2022, extending last week’s gains. The move followed a report received by the UK Maritime Trade Operations office that an LNG tanker was attacked near Yemen on Saturday, heightening concerns over Middle East supply and a fragile winter supply-demand balance amid low storage levels.
European Gas Prices Hit Highest Since Late 2022 on Middle East Supply Risks
The significance here is not the size of the move but the fact that a single tanker incident near Yemen can reprice a benchmark still sitting at levels last seen in late 2022 — evidence that European gas is again trading on headline risk rather than fundamentals alone. The read-across lands hardest on European utilities and industrial gas consumers already facing a thin winter buffer, since low storage leaves little room to absorb any disruption to LNG flows. Whether the risk premium holds depends on whether further attacks on shipping materialise and how quickly storage is rebuilt before peak winter demand.
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