Europe's benchmark remains close to €90 on Middle East tensions
UNG•European benchmark gas prices rose to €88.74/MWh on Wednesday, near a nearly four-year high, as tanker attacks near the Strait of Hormuz kept supply concerns elevated. Asian LNG prices were above $30/mmBtu, intensifying competition for cargoes.
1. European prices climb
The Dutch front-month contract at the TTF hub was up €3.67 at €88.74/MWh by 0830 on Wednesday. It had briefly topped €90/MWh on Tuesday, its highest since December 2022, before a sharp selloff. The British front-month contract rose 8.94 pence to 218.30 pence per therm, near Tuesday’s high of 220.60 pence.
2. Supply concerns persist
Intermittent attacks on LNG tankers in the Persian Gulf are keeping producers such as Qatar from ramping up exports, ANZ strategist Daniel Hynes said. LSEG’s Wayne Bryan said Iran-US headlines remain a key upside and downside risk for gas prices. European gas storage was 74.62% full, below historical levels for this time of year, while Asian LNG prices were above $30/mmBtu.
