Prices swung lower once the contract briefly touched €90, a level not seen in nearly four years, with profit-taking helping drive a late-session drop of 5.3% that erased the push to the highest since late 2022. By 5:06 p.m. in Amsterdam, the benchmark contract was quoted at €84.32 per megawatt-hour, 4.2% lower on the day, after earlier peaking at €90.24.
Oil prices also eased, pressured by a report - unconfirmed - saying Qatar and Pakistan had advanced a fresh proposal to restart talks aimed at ending the Iran war.
Even after the drop, prices are more than twice where they stood before the conflict, and while still below the worst of the last energy crunch, the latest surge is squeezing consumers and industry. Storage is the pressure point: Europe's sites are about 75% full, the lowest seasonal level in data back to 2009, and Germany sits just over 61%.
Supply risk is sticky. Benchmark LNG in Asia has surged to its strongest level since 2022, and assaults targeting oil and gas ships have grown more frequent, while Iran said it has "no choice" but to assert control over the Strait of Hormuz. On Tuesday, Qatar said talks to resolve the crisis involving the US and Iran continue and have not been interrupted.
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Europe may have to pay more to secure enough LNG cargoes this winter, with firm Asian demand setting up tougher bidding once cold weather arrives. A mild October has helped companies inject gas faster than usual for this month, offering a short breather, but governments have so far resisted reviving expensive support such as price caps and tax cuts as strained budgets and higher borrowing costs limit options.
Rabobank senior energy strategist Florence Schmit captured the mood: "We are seeing a bit of a correction after the €90 ceiling was reached," adding, "But I think we have potential to go above that level again in the next week." The bottom line: volatility stays elevated, and that keeps winter hedging and energy-heavy exposures front and center for your portfolio.
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