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European natural gas prices jump to highest level since January 2023
Dutch TTF front-month futures rose more than 70 euros per MWh after US and Iran resumed strikes, tightening LNG supply into winter.
European benchmark natural gas prices surged in early Monday trading, with the Dutch Title Transfer Facility, or TTF, rising about 5% and topping 70 euros, or $81.20, per megawatt-hour.
OilPrice reports the move followed a re-escalation of hostilities between the United States and Iran, which intensified concerns about liquefied natural gas supply from the Middle East. The outlet links the jump to the resumption of trading strikes after more than a month.
OilPrice said the front-month TTF benchmark hit its highest level in more than three and a half years, since January 2023. The article also points to higher oil prices in Europe, up 3.6% in the morning, amid concerns that renewed tensions could unwind recent rebounds in oil volumes that have left the Persian Gulf via the Strait of Hormuz.
With the Strait of Hormuz still blocked for LNG traffic, OilPrice noted Asia and Europe are competing for a shrinking pool of supply ahead of winter, as Europe heads into the season with gas in storage at one of the lowest levels in two decades and LNG supply strained by the war in the Middle East. The article adds that Qatar’s LNG situation and the competition for cargoes have left markets more exposed to renewed disruptions.
Latest closeNat gas $2.881 ▼0.9%