European natural gas prices reach two-year high amid supply concerns

European natural gas prices surged to their highest levels since December 2022 on October 13, 2026. The Dutch TTF benchmark climbed to 87.04 euros per megawatt-hour, marking a significant increase as market participants express growing concerns over supply disruptions caused by the ongoing war in the Middle East, which has specifically impacted production and exports from Qatar.

Energy infrastructure data indicates that gas storage levels across the European Union stand at approximately 73.7%, falling short of the 85-90% target for the winter period. Germany is facing particularly low inventory levels at 59.96%. Consequently, at least four LNG tankers originally bound for Asia were rerouted toward Europe last week to replenish stocks. Analysts warn that competition for available gas cargoes between Asia and Europe is likely to intensify, further pressuring global prices.

Market volatility remains high as the region prepares for the winter season with lower-than-average reserves. While oil prices showed a decline, the upward trajectory for natural gas continues across major markets, including the UK and the US, reflecting widespread apprehension regarding energy security and geopolitical instability in the Persian Gulf.