UK Natural Gas Rises Further on Supply Risks
UK natural gas prices rose above 154 pence a therm on Monday, reaching a fresh three-week high amid continued disruption to LNG supplies from the Gulf as US-Iran negotiations stalled. Renewed Israeli strikes against Tehran-backed Hezbollah in Lebanon, along with the latest US threats of additional sanctions on Iran, have further clouded prospects for an ...
UK natural gas prices surged to a three-week high of 154 pence per therm on Monday, driven by supply disruptions and geopolitical tensions. The rise in prices was fueled by ongoing disruption to liquefied natural gas (LNG) shipments from the Gulf, stemming from stalled US-Iran negotiations. Compounding the situation, renewed Israeli strikes targeting Hezbollah in Lebanon and fresh US threats of additional sanctions on Iran have raised doubts about the likelihood of a swift resolution to reopen the Strait of Hormuz.
This waterway's traffic has plummeted following attacks on vessels, underscoring the persistent security risks in the region.
Europe is facing mounting concerns over its dwindling gas inventories, with storage levels lagging behind historical averages and pre-winter targets. The situation is further exacerbated by heatwaves sweeping across Southern and Central Europe, which have fueled demand for gas-fired power generation. This surge in demand has diverted supplies meant for storage, exacerbating the shortage.
The combination of geopolitical uncertainties, security concerns, and increased demand has pushed UK natural gas prices to a fresh high, signaling potential challenges ahead for both European energy markets and global LNG supply chains.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
