European Gas Prices Surge 120% to €63.7/MWh as Storage Sits at 57.1%
Updated
Updated · Euronews · Aug 20
European Gas Prices Surge 120% to €63.7/MWh as Storage Sits at 57.1%
1 articles · Updated · Euronews · Aug 20
Summary
Dutch TTF gas futures hit about €63.7/MWh on Aug. 18, up roughly 120% since the start of 2026, leaving Europe exposed to a costly winter even though prices remain far below the 2022 peak of €350/MWh.
Record heat, drought and supply disruptions are driving the rally: stronger power demand, weaker hydro and nuclear output, extended Norwegian outages and the effective closure of the Strait of Hormuz are forcing more gas-fired generation just as Europe should be refilling storage.
Gas storage was only 57.1% full on Aug. 1—the lowest reading for that point in the historical series—well short of the EU's 90% target, though Brussels has allowed more flexibility and has encouraged countries to consider an 80% goal in difficult markets.
Oxford Economics now expects to raise its gas-price forecast, potentially to nearly €60/MWh in Q4 2026 and Q1 2027 from €45/MWh, warning that a cold winter could quickly tighten a market with little slack.
That would turn the gas rally into an inflation problem: Oxford estimates eurozone headline inflation could run near 3.5% in the second half of 2026 versus just above 3% in its baseline, reinforcing expectations for a 25-basis-point ECB rate hike in September.