British Gas Gains 7.3%, EU Gas Up

European and British Wholesale Gas Prices Rise

The benchmark Dutch front‑month natural gas contract increased by 1.1% to €73.33 per megawatt‑hour, consolidating gains after a brief early‑week pullback. In Great Britain, the day‑ahead wholesale gas contract rose 3.5% to 187.24 pence per therm, positioning it to close September up 7.3% and delivering a third consecutive month of gains, driven by robust power‑sector demand and elevated regional export flows that have tightened local balances.

The continental Dutch benchmark is expected to finish the month largely unchanged after a volatile September marked by rapid swings in global LNG flows and shifting weather forecasts. Despite this stabilization, European underground storage inventories remain roughly 12 percentage points below the levels recorded at the same time last year, leaving continental markets sensitive to sudden supply disruptions.

Geopolitical tension in the Strait of Hormuz continues to sustain a winter risk premium: the stalemate following the collapse of recent cease‑fire negotiations has kept Brent crude above $106 a barrel, reinforcing fears of cost‑push energy inflation. With global LNG cargoes potentially subject to rerouting and competition from Asian buyers intensifying ahead of the northern‑hemisphere winter, energy desks warn that continental gas prices remain anchored to a high baseline risk premium as the fourth quarter approaches.