European Gas Climbs Amid Supply Concerns
European natural gas prices rose to €73.7/MWh on Tuesday, hovering at their highest level in more than three and a half years, as LNG supply from the Persian Gulf remained severely disrupted amid heightened US-Iran tensions. The escalation in fighting between the two nations underscored the difficulty of reaching a resolution to the conflict that ...
European natural gas prices surged to €73.7 per megawatt-hour on Tuesday, reaching their highest level in over three and a half years. This sharp increase was driven by severely disrupted LNG supply from the Persian Gulf due to heightened tensions between the US and Iran. The ongoing conflict has made it difficult to resolve the situation and reopen the Strait of Hormuz, which is essential for gas shipments.
Iran has warned that energy infrastructure in the region, including US oil and gas facilities, could be at risk of further attacks.
Qatar has largely halted LNG shipments and issued force majeure notices for cargoes destined for European and Asian markets throughout the autumn. The reduced inflow of gas has slowed the pace of gas storage injections in Europe. Currently, EU storage facilities are at 66% capacity, which is below the seasonal average. As the heating season approaches, the gas market is becoming increasingly vulnerable due to the ongoing supply concerns.
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.
