European natural gas prices continue to climb and are now about 10 times more than usual ahead of key winter months

• European natural gas prices continue to rise and are now 10 times the usual amount for this time of year, Bloomberg data shows.
• Dutch TTF natural gas futures, the benchmark European price, hovered near 234 euros per megawatt hour Thursday, up about 3.5% intraday.

European natural gas prices continue to inch higher amid the continent's worsening energy crisis and are now 10 times higher than usual for this time of the year, according to Bloomberg.

Dutch TTF natural gas futures, the benchmark European price, hovered near 234 euros per megawatt hour Thursday, up about 3.5% intraday — and 381% higher from a year ago.

A severe heat wave in Europe has been driving up demand for electricity recently, adding to pressure on gas prices. On Tuesday, prices touched 239.62 euros per megawatt hour, but are still well below the all-time intraday high of 345 euros reached when Russia launched its war on Ukraine.

Russia continues to squeeze natural gas flows to Europe, as Moscow recently slashed Nord Stream 1 deliveries to just 20% of capacity, and also halted flows to Latvia this month.

At the same time, in Germany, the Rhine river has dropped to extremely low levels after a period of drought, which could threaten the transport of key commodities. Ole Hansen, chief commodities strategist at Saxo Bank, told Insider previously that demand for pipeline gas could rise if other delivery avenues like the Rhine are squeezed.

Meanwhile, Germany and other European nations are scrambling to stockpile natural gas to ensure supplies can last through the winter.

However, a new gas pipeline link from the Iberian Peninsula to France could be ready within nine months, according to Spain's energy minister. The new project could boost Spain's export capacity by up to 30%, which would help alleviate some supply pressures.

Still, earlier in August, Bank of America analysts said Europe's natural gas crisis is set to intensify once the colder weather arrives.

"The European gas situation is quickly moving from our 'bad' to our 'ugly' scenario in the past month," analysts wrote.