European gas prices hit four-month high amid Middle East conflict fears
7 reported
European gas prices have reached a four-month high as the escalation of the conflict in the Middle East raises concerns about supply shortages this winter, according to a report from The Guardian. The Dutch natural gas benchmark briefly rose above €60 per megawatt hour on Monday, near levels seen at the start of the US-Iran conflict, after the US expanded its aerial offensive and Iran retaliated with strikes on Bahrain and Kuwait. Analysts at Independent Commodity Intelligence Services (ICIS) said Europe’s gas supplies face pressure this winter, with the conflict delaying the expected recovery of Qatari liquefied natural gas (LNG) exports during the critical summer storage season. European gas storage is now less than 54% full, compared with 64% at the same point last year. ICIS calculated that only 26 LNG cargoes have crossed east out of the Gulf since the conflict began on 28 February, versus the usual 90 to 100 each month. The price of gas eased later on Monday to about €57 per MWh.
What’s reported
European gas prices hit a four-month high, with the Dutch benchmark briefly above €60 per MWh on Monday.
The US expanded its aerial offensive and Iran retaliated with strikes on Bahrain and Kuwait.
ICIS said the conflict delays recovery of Qatari LNG exports in the summer storage season.
European gas storage is less than 54% full, compared to 64% at the same point last year.
Only 26 LNG cargoes have crossed east out of the Gulf since the conflict began on 28 February, versus the usual 90 to 100 per month.
Brent crude briefly breached $90 a barrel on Sunday, its highest level in a month.
Gas prices eased to about €57 per MWh later on Monday.
Key figures
Andreas Schroeder, head of energy analytics at ICIS
Jess Ralston, head of energy at the Energy and Climate Intelligence Unit
Sources: The Guardian
