European gas prices hit a three-month high

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European natural gas prices surged to their highest point in three months as benchmark futures rose for a second straight day, up 3.6%, driven by escalating worries over global liquefied natural gas (LNG) supplies.

The price rally underscores persistent supply tightness in the European gas market as the region prepares for the winter heating season.

As winter approaches, Europe must refill its gas reserves while facing tight and increasingly costly global supplies.

The next-month Dutch gas contract rose to roughly €50.65 per megawatt-hour, and the equivalent UK contract climbed about 5% as investors reacted cautiously to geopolitical uncertainties.

Europe's growing reliance on LNG imports after the reduction in Russian pipeline flows makes it susceptible to global price swings. The current spike highlights fierce competition for limited cargoes. Market participants are closely watching whether storage fill rates will be adequate to cover peak winter demand.