Europe’s Gas Prices Jump as Hormuz Standoff Drags On
Oil Price
O
Oil Price
Original Source
European natural gas benchmark prices surged 4% at Thursday's opening in Amsterdam as the U.S. and Iran remain at loggerheads over ending the conflict and reopening LNG shipment routes through the Strait of Hormuz. The persistent disruption in Middle Eastern supply has pushed gas prices to their highest levels since the 2022-2023 energy crisis.
Europe’s benchmark natural gas prices jumped by 4% at trade open in Amsterdam on Thursday, as the United States and Iran remain distant on how to end the war and put an end to the blocked LNG shipments at the Strait of Hormuz.
After surging 4% at open, the front-month price at the Dutch Title Transfer Facility (TTF), the benchmark for Europe’s gas trading, eased, but was still up by 3% at $84.30 (74 euros) per megawatt-hour (MWh) as of mid-morning.
Prices have eased from their peak for this month of as much as $93 (82 euros) per MWh, which was the highest since January 2023, when Europe faced the first winter without most of the Russian pipeline gas supply.
Despite the pullback in recent days, the continued standoff over the Strait of Hormuz and the ongoing fears of how little LNG supply is actually leaving the Middle East fueled another rally in European prices early on Thursday as Europe struggles to fill gas storage sites ahead of winter.
The U.S. and Iran resumed indirect contacts and talks on the sidelines of the UN General Assembly in New York this week, but no progress has emerged from these.
Some Qatari and UAE cargoes have managed to transit the Strait of Hormuz in recent weeks, but these are too low to move the needle of the global LNG balance.
The choked LNG flows from the Middle East in the past six months have sent gas prices in Asia and Europe to the highest since the 2022-2023 energy crisis as buyers are competing for available supply that doesn't need to move through the Strait of Hormuz.
Earlier this week, Fitch Ratings raised its TTF gas assumptions for this year and next, due to the Iran conflict.
“The increased TTF gas assumptions reflect disruptions to LNG flows through Hormuz, which accounted for 20% of global LNG supply before the conflict,” Fitch Ratings said.
“EU gas storage is only two-thirds full, sufficient to avoid supply disruptions during winter but well below the 80%-90% levels at this time in 2022-2025.”
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Morgan Stanley: Diesel Export Ban Would Push U.S. Gas Prices Higher
U.S. to Back Argentina’s First LNG Export Project With $6 Billion Loan
Just One Commodity Vessel Left the Strait of Hormuz on Wednesday
After surging 4% at open, the front-month price at the Dutch Title Transfer Facility (TTF), the benchmark for Europe’s gas trading, eased, but was still up by 3% at $84.30 (74 euros) per megawatt-hour (MWh) as of mid-morning.
Prices have eased from their peak for this month of as much as $93 (82 euros) per MWh, which was the highest since January 2023, when Europe faced the first winter without most of the Russian pipeline gas supply.
Despite the pullback in recent days, the continued standoff over the Strait of Hormuz and the ongoing fears of how little LNG supply is actually leaving the Middle East fueled another rally in European prices early on Thursday as Europe struggles to fill gas storage sites ahead of winter.
The U.S. and Iran resumed indirect contacts and talks on the sidelines of the UN General Assembly in New York this week, but no progress has emerged from these.
Some Qatari and UAE cargoes have managed to transit the Strait of Hormuz in recent weeks, but these are too low to move the needle of the global LNG balance.
The choked LNG flows from the Middle East in the past six months have sent gas prices in Asia and Europe to the highest since the 2022-2023 energy crisis as buyers are competing for available supply that doesn't need to move through the Strait of Hormuz.
Earlier this week, Fitch Ratings raised its TTF gas assumptions for this year and next, due to the Iran conflict.
“The increased TTF gas assumptions reflect disruptions to LNG flows through Hormuz, which accounted for 20% of global LNG supply before the conflict,” Fitch Ratings said.
“EU gas storage is only two-thirds full, sufficient to avoid supply disruptions during winter but well below the 80%-90% levels at this time in 2022-2025.”
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Morgan Stanley: Diesel Export Ban Would Push U.S. Gas Prices Higher
U.S. to Back Argentina’s First LNG Export Project With $6 Billion Loan
Just One Commodity Vessel Left the Strait of Hormuz on Wednesday
🔗 Share Article
Tags:#الغاز الطبيعي#أوروبا#مضيق هرمز#أسعار الطاقة#الغاز الطبيعي المسال#النزاع الإيراني
Source: Oil Price
For Context
Related reads from the same topic or latest developments