European gas prices top €100 for first time since 2022

European natural gas prices rose above 100 euros per megawatt-hour on Wednesday for the first time since 2022, amid concern over the Middle East war and the need to fill reserves before winter.

Around 1455 GMT, the Dutch TTF futures contract, the benchmark for European gas, was up more than four percent at 100.45 euros per megawatt-hour.

Prices remain below the highs reached during the 2022 energy crisis after Russia's invasion of Ukraine. They hit 345 euros per megawatt-hour in March 2022.

Arne Lohmann Rasmussen, chief analyst at Global Risk Management, said concerns about renewed escalation in the Middle East were pushing prices higher. He also said weather forecasts were supporting prices, with Europe set for lower wind and solar generation, increasing demand for gas.

Analysts said European countries are using less gas than in 2022 as they switch more electricity generation to renewables. They said that shift reduces the risk of a gas price rise causing electricity bill increases as severe as those seen in 2022.