Europe Gas-Dutch gas price hits its highest level since Jan 2023 as US, Iran strikes intensify
XLE•European carbon market
In the European carbon market, the benchmark contract <CFI2Zc1> edged down by €0.15 to €83.18 euros a metric ton.
Strait of Hormuz risk and LNG supply concerns
“The market had hoped that the U.S. and Iran would be able to reach some sort of agreement, that allowed Hormuz to reopen, but is now starting to price in a long-lasting closure of the Strait and a very bad supply situation ahead of the upcoming heating season,” analysts at Mind Energy said.
The United States said it had launched a series of airstrikes against targets in Iran overnight, prompting a response from Tehran, in the most serious escalation of the conflict between the two countries in weeks.
The Islamic Revolutionary Guard Corps said the U.S. attacks would further restrict traffic through the Strait of Hormuz, through which roughly a fifth of the world's liquefied natural gas (LNG) typically passes.
Analysts have said European gas prices need to remain elevated to attract U.S. LNG. Europe’s gas stores are 65.39% full, latest data from Gas Infrastructure Europe showed.
Dutch and British gas prices jump on Middle East escalation
LONDON, Sept. 2 (Reuters) - Dutch and British gas prices rose on Wednesday morning, with the benchmark Dutch contact touching a 43-month high as the United States and Iran exchanged strikes overnight.
The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was up €0.862 at €73.08 per megawatt hour (MWh) or around $24.80 /mmBtu, by 0809 GMT, ICE data showed.
The contract earlier touched €75.325/MWh, its highest intra-day level since January 2023.
