European gas rises above €82/MWh on persistent Gulf LNG disruptions

European natural gas prices rose above €82/MWh on Friday, reaching their highest level since December 2022, as LNG supplies from the Persian Gulf continued to be disrupted. The fighting between the US and Iran has intensified over the past two weeks, with the dispute centering on control of the Strait of Hormuz. The blockade has already disrupted around 20% of global LNG flows, mainly affecting shipments from Qatar. Europe has struggled to rebuild depleted inventories, with storage sites around 67% full, the lowest for this time of year in records going back to 2009.

The European Commission said there is no immediate risk to gas security this winter, but a prolonged disruption to Gulf LNG supplies could tighten global supply further and force Europe to compete more aggressively with Asia and other buyers for alternative cargoes. European gas prices have risen more than 14% this week, marking a fifth straight weekly gain.