European natural gas prices rose during Tuesday's trading session on September 8, 2026, to their highest level since January 2023, with benchmark futures gaining 3.4% before paring gains to 2.4% at 75.10 dollars per megawatt-hour.
Storage levels below normal
European gas storage facilities were 67% full, compared with 83% at this time of year under normal conditions, with less than a month remaining before the start of the heating season. This is prompting buyers to accelerate efforts to build inventories ahead of winter.
Analysts at Timera Energy said low storage levels were reducing the market's ability to absorb new supply or demand shocks, prompting Europe to offer higher prices to attract liquefied natural gas cargoes and compete with Asia.
Markets await developments on the Strait of Hormuz
Markets are awaiting details of a potential agreement between Iran and Oman on navigation through the Strait of Hormuz, through which nearly one-fifth of the world's energy supplies pass, amid statements from Tehran that an agreement involving a temporary safe passage is close.
Meanwhile, the first Qatari liquefied natural gas cargo since last July passed through the strait en route to Pakistan, while a broader resumption of Gulf supplies could ease pressure on buyers.
Efforts to build inventories and diversify supplies
The European Union is targeting storage levels of 90% of capacity while reducing its reliance on Russian gas and expanding supplies from the United States, Norway, Qatar and Algeria. Europe's energy system is more resilient than it was in 2022 after expanding LNG imports and diversifying suppliers, but higher prices remain the main source of pressure.
