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Natural gas prices jump as Middle East shipping disruptions lift Europe costs
Europe’s Dutch benchmark briefly topped €60 per MWh, and LNG cargo departures from the Gulf have slowed sharply since Feb. 28.
OilPrice reports natural gas prices have risen in Europe and Asia as a renewed Iran conflict has disrupted key shipping routes, with the Strait of Hormuz effectively shut and the Strait of Bab el-Mandeb also affected.
According to the outlet, Asia relies heavily on LNG imports from major Middle East producers such as Qatar and the UAE, while Europe sources a smaller but meaningful share, cited at 7% to 11%, from the same region. European gas prices moved to four-month highs as markets priced in concerns about winter shortages.
OilPrice says the Dutch natural gas benchmark briefly rose above €60 per megawatt hour, close to levels seen earlier in the US-Iran conflict. Analysts at Independent Commodity Intelligence Services warned that gas supplies entering winter face added pressure because conflict conditions are delaying the expected recovery of Qatari LNG exports during the summer storage season.
The outlet adds that European gas storage is now below 54% full, compared with 64% at the same point last year, and that only 26 LNG cargoes have left the Gulf since the conflict began on Feb. 28, versus a typical monthly range of 90 to 100. ICIS said if gas prices remain above €60, it could trigger costly state intervention to protect security of supply.
Latest closeNat gas $2.883 ▲0.6%