European Natural Gas Prices Hit Three-Year Highs
European natural gas futures remain near 2022 peaks as the European Central Bank warns that rising borrowing costs will hinder energy bill absorption.
European wholesale natural gas futures remained steady on Monday near their highest levels since 2022. The Dutch TTF benchmark has risen approximately 210% year-to-date, while the NBP gas benchmark in Great Britain surged roughly 196% over the same period.
Christine Lagarde, President of the European Central Bank, warned that rising sovereign bond yields and higher borrowing costs are tightening financial conditions. She stated that these factors will make it more difficult for European households and industrial firms to absorb high energy bills caused by conflicts in the Middle East.
Market stability remains pressured by structural supply risks. Maritime attacks have constrained LNG deliveries through the Strait of Hormuz, and underground gas storage levels remain under-filled ahead of the winter season. The European Central Bank is expected to raise its policy rate to 2.75% in December.
