SAEDNEWS: European gas prices have climbed more than 130% in 2026 as low reserves, supply disruptions and surging electricity demand increase pressure ahead of winter.
According to SaedNews: European gas prices have risen more than 130% so far in 2026, with depleted reserves and supply risks leaving the continent increasingly exposed to an expensive winter.
Dutch TTF gas futures, Europe’s main gas benchmark, climbed above €65 per megawatt-hour on Thursday, reaching their highest level since March. The latest rise extends the upward trend and puts prices more than 130% above their level at the start of the year.
The increase has come during another heatwave across Europe, adding to concerns about the winter ahead. Record temperatures have boosted electricity demand, while drought and extreme heat have reduced hydropower and nuclear generation. Gas-fired power plants have therefore had to cover part of the shortfall, even as Europe needs to inject more gas into storage before winter.
Prices remain far below the record €350 per megawatt-hour reached in 2022, when the energy crisis began following Russia’s invasion of Ukraine. Still, Europe is approaching winter with lower gas stocks and limited room to absorb another supply shock.
The latest price acceleration has come at a particularly difficult time. Europe normally spends the summer rebuilding its gas reserves before the heating season begins, but this year the process has coincided with several disruptions.
The Strait of Hormuz effectively remains closed, Norway has extended outages at some gas fields, and drought has weakened hydropower and nuclear output. At the same time, gas plants have met part of the additional electricity demand caused by the heatwave, increasing demand for the same fuel Europe needs for winter storage.
The result is a market with little spare capacity. Daniel Kral, an economist at Oxford Economics, wrote that several adverse supply risks had materialized and that gas storage levels before the cold season were historically low.
Oxford Economics said it would likely raise its European gas price forecast in September, projecting an average of around €60 per megawatt-hour for the fourth quarter of 2026 and the first quarter of 2027—still below Thursday’s market price.
