Key facts
- European natural gas prices hit €97 per megawatt-hour, highest since 2022.
- UK gas prices rose to 240p per therm, highest since December 2022.
- European gas storage is at 75% capacity, below the seasonal average.
- Brent crude oil remains over $114 a barrel amid Middle East tensions.
- UK households face predicted 16% energy bill rise in January.
European natural gas prices have surged to levels not seen since 2022, fueled by growing concerns over winter supply and ongoing Middle East conflict. Wholesale gas prices reached €97 (£81) per megawatt-hour on Monday, while the UK's month-ahead contract climbed to 240p per therm, its highest since December 2022.
Fears of further supply disruptions in the Middle East, coupled with reduced LNG flows from Qatar and increased summer consumption, have left European gas storage at approximately 75% capacity, below the seasonal average. Britain's energy regulators warn of high winter energy costs due to import reliance, with household bills predicted to rise 16% in January.