European Gas Rises 1.2% to €97.35, Highest in Nearly Four Years
Key Facts
The Dutch front-month European gas contract rose 1.2% to €97.35 per megawatt hour on Wednesday, October 28, 2026, its highest level in nearly four years, according to Investing.com. The gains came as security concerns mounted after the Houthis said they had targeted Saudi energy facilities, while markets monitored supply routes to Europe. British contracts also rose, extending the rally into another session. The report said the market was pricing risks to fuel security, but available reports did not establish that the announced attacks had caused any new supply disruption.
In Britain, gas contracts rose 1.5% to 241 pence per therm, touching their highest level since 2022 and extending gains for a sixth consecutive session, according to Investing.com. Moves in both markets point to continued pressure on European gas prices, with the Dutch contract reaching a level not seen in nearly four years. The report said the Houthis announced on Tuesday that they had targeted the Ras Tanura refinery with a ballistic missile. It described the refinery as the kingdom's largest refining complex and crude export terminal. The announcement alone does not mean the facility was hit or that its exports were disrupted.
The Associated Press said the Houthis claimed on social media that a ballistic missile had hit the Ras Tanura refinery, but it could not verify the claim, and Saudi Arabia had not commented when its report was published. Saudi authorities, meanwhile, said they destroyed two ballistic missiles launched toward Riyadh and intercepted three others headed for the Eastern Province. The report said Saudi air defenses intercepted missiles over the capital, with no reports of damage in the incident it covered. Investing.com reported that this week's attacks also targeted pumping stations on the East-West oil pipeline and King Khalid International Airport in Riyadh. Reports of targeting remain separate from evidence that facilities were hit or material losses occurred.
The pumping stations are significant because the East-West oil pipeline carries Saudi supplies to the Red Sea, allowing them to bypass the Strait of Hormuz. The pipeline stretches 1,200 kilometers, according to Investing.com, which described it as the main route for moving supplies away from the contested strait. For liquefied natural gas, the International Energy Agency said flows through Hormuz had accounted for about 20% of global supply before they were disrupted, and that the stoppage was associated with sharp price swings. LNG shipments from Qatar and the UAE fell by 35 billion cubic meters year over year between March and June 2026. Over the same period, LNG production outside the Gulf rose by about 18%, offsetting nearly three-quarters of the decline in Gulf shipments, according to the agency.
Storage levels and weather remain among the factors traders are monitoring as the heating season begins. The report presented these indicators as market context, without establishing an independent effect on risk premiums. Attention is expected to turn in early November to weather developments in both regions, alongside monitoring whether the announced attacks will have a tangible impact on energy facilities or supply routes.