European gas prices tumble after hitting four‑year high of €90

European natural gas prices fell sharply after reaching €90 per megawatt‑hour, the highest level in almost four years. Benchmark Dutch front‑month futures slid as much as 5.3% in the later session, ending 4.2% lower at €84.32, after peaking at €90.24 earlier in the day. Traders cited profit‑taking as the rally eased. "We are seeing a bit of a correction after the €90 ceiling was reached," said Rabobank senior energy strategist Florence Schmit. She added that the market could push above that level again within a week. Oil also slipped on an unconfirmed report that Qatar and Pakistan had floated a new proposal to revive talks aimed at ending the Iran war. Europe’s gas‑storage sites are now about 75% full, the lowest for the season in records dating back to 2009, while Germany’s storage sits just over 61%, the weakest among major economies. Prices remain more than double the pre‑conflict levels, keeping consumers and industry under pressure. Governments have so far resisted re‑introducing costly price caps or tax cuts, citing strained budgets and high borrowing costs. Winter demand and strong Asian liquefied natural gas (LNG) buying could force Europe to pay higher premiums for cargoes, especially as Persian Gulf LNG—about a fifth of global supply—remains disrupted by the war. Asian LNG prices have climbed to their highest since 2022. Qatar said on Tuesday that efforts to resolve the US‑Iran crisis continue, while Iran warned it has "no choice" but to assert control over the Strait of Hormuz. Mild weather this month gave European energy firms a chance to top‑up storage faster than normal for October, yet traders stay on high alert for any supply shock.

Context

Low storage levels mean Europe has little cushion if winter demand spikes or supply from the Middle East stays blocked. Higher Asian LNG prices add competition for the limited cargoes, pushing European buyers toward higher costs.