EU gas prices hit four-year high

Disrupted LNG shipments and dwindling reserves have raised fears of another European energy crisis European natural gas prices have surged to their highest level in four years amid the Iran war and the EU’s continued push to phase out Russian energy, according to data from online aggregator Trading Economics. On Monday, wholesale prices briefly surpassed €97 ($108) per megawatt-hour, reaching levels not seen since December 2022. The increase came as gas storage facilities in the EU were just 74. 62% full as of October 25, well below seasonal averages. Liquefied natural gas (LNG) shipments through the Strait of Hormuz, which accounted for around a fifth of global LNG trade before the start of the US-Israeli war against Iran earlier this year, remained around 80% below pre-conflict levels. Some EU countries have already begun drawing on stored gas as temperatures drop.

Trading Economics forecasts that European gas prices will reach €98. 20 per megawatt-hour by the end of the fourth quarter of 2026. In the UK, the month-ahead gas contract rose by 4% to its highest level since December 2022, according to The Guardian. Brent crude, which climbed to $117 per barrel last week, has since eased slightly but remains at around $115. EU faces worst energy crisis since 2022 – Brussels British households could face a 27% increase in energy bills in January, pushing the average annual dual-fuel bill to nearly £2,200 ($2,940), according to a forecast by energy supplier EDF. An earlier forecast by Cornwall Insight projected a 16% increase to £2,000. In August, The Guardian reported mounting concerns in the EU over low gas storage levels and soaring prices ahead of winter. In September, EU Energy Commissioner Dan Jorgensen warned that the bloc faces its worst energy…