New Delhi, Oct. 12 -- European gas prices could rise around 30 per cent above current market expectations in the fourth quarter of 2026 as the region enters the winter season with gas storage levels at their lowest in more than a decade, according to a Bank of America (BofA) report.

The bank expects European gas prices to average around 250 pence per therm, or 100 euros per megawatt-hour, between October and December 2026. This would mark an increase of nearly 60 per cent from the previous quarter.

"Our 4Q26 base case scenario for European gas sits ~30% above the current forward curve price at ~$200/boe," the report said.

According to the report, European gas storage levels stood at around 73 per cent in early October, compared with 83...