Europe gas prices rise on Strait of Hormuz shipping attacks
UNG•Dutch and British wholesale gas prices climbed to their highest in more than two weeks after tanker attacks around the Strait of Hormuz curbed hopes for more LNG shipments. Dutch front-month gas rose €2.03 to €80.11 per MWh, while British gas gained 5.46 pence to 199.08 pence per therm.
1. Gas prices climb
The Dutch front-month contract at the TTF hub rose €2.03 to €80.11 per megawatt hour by 0731 GMT, its first move above €80 since September 21. The British front-month contract gained 5.46 pence to 199.08 pence per therm and briefly topped 200 pence for the first time since September 21.
2. Supply concerns build
Tanker attacks in the Strait of Hormuz reached their highest weekly level since the start of the US-Israeli war against Iran. A tanker was hit near Qatar on Wednesday, with reports of casualties; an analyst said the attack’s proximity to Qatar was particularly concerning for the LNG market. TTF prices have risen 15% since the end of September.
3. Weather and disruption
Cooler forecasts for northwest Europe could increase gas demand and slow storage injections. European gas storage was 72.97% full, below historical levels for this time of year. Hurricane Isaias had curtailed about 25% of US oil production and 16% of natural gas production as of Wednesday.
