European gas rises near three-and-a-half-year highs on supply disruptions
European natural gas climbed to €73.7/MWh, hovering at the highest level in more than three and a half years. LNG supply from the Persian Gulf remained severely disrupted amid US-Iran tensions.
7/MWh on Tuesday and were hovering at their highest level in more than three and a half years. LNG supply from the Persian Gulf remained severely disrupted amid heightened US-Iran tensions, with the escalation in fighting underscoring the difficulty of reaching a resolution that could reopen the Strait of Hormuz. Iran warned on Monday that energy infrastructure across the region, including US oil and gas facilities, could be vulnerable to further attacks. Qatar has largely suspended LNG shipments and extended force majeure on cargoes bound for European and Asian markets through the autumn as shipping disruptions continue along the critical waterway.
Reduced inflows have slowed the pace of gas storage injections in Europe, with EU storage facilities around 66% full, below the seasonal average, leaving the gas market more exposed as the heating season approaches.