Forex
Home›Forex›Central Banks›ECB meeting notes euro zone markets pressured by energ…
ECB meeting notes euro zone markets pressured by energy prices
The Governing Council said euro area gas prices rose to the highest level since early 2023, alongside low storage levels and rising refined product prices.
At an ECB monetary policy meeting account, the European Central Bank’s presentation highlighted how euro area financial markets since the 22 to 23 July 2026 meeting have been driven by developments in energy prices, including a global rise in long term yields and a resilient euro area macroeconomy, according to Action Forex.
The ECB account said persistently high energy prices, together with concerns about higher food price inflation, had pushed market expectations for the inflation outlook and policy rates higher. It also cited renewed US-Iran hostilities as a factor lifting energy prices and energy futures curves, with attention in Europe shifting from oil to refined products and gas.
In Europe, the account pointed to the gas oil price and futures curve, a refined, diesel-type product, rising significantly due to concerns about limited refining capacity. It also said European gas prices had risen to the highest level recorded since early 2023, and that low European gas storage levels could add further upward pressure on gas prices.
The ECB account further noted that a recent heatwave in Europe and concern about a potentially strong El Niño event have added to worries about upward price pressures, alongside a rise in international food prices. It said these factors have contributed to expectations of higher inflation and policy rates.