European gas prices hit four-year high on supply concerns

European natural gas prices soared to their highest level in four years during trading on Wednesday, exceeding $107.6 (97 euros) per megawatt-hour, amid growing concerns over gas supplies across the continent for the coming winter and the ongoing conflict in the Middle East.

The conflict in the Middle East has disrupted liquefied natural gas shipments from the Gulf, which accounts for about one-fifth of global supply, complicating Europe's efforts to rebuild its reserves.

According to Asharq, gas storage facilities in the region are about 75% full, the lowest level for this season since records began in 2009. At the same time, temperatures across Europe are expected to drop, likely increasing demand for heating in the coming days.

Unplanned outages in Norway have further heightened short-term supply concerns. European gas prices have hit record highs several times recently, rising by about a third since the start of this month and more than tripling since the beginning of the year.

It is worth noting that natural gas is typically supplied under long-term contracts, meaning that increases in global market prices may take some time to reach consumers.