European Gas Prices Extend Rally
European natural gas prices extended their rally, rising to €91/MWh on Friday to hit a fresh multi-year high as ongoing disruptions to Persian Gulf supplies kept the global LNG market tight ahead of winter. Reports of US preparations for a possible new attack on Iran after the US midterm elections raised the risk of sustained supply disruptions. LNG shipments from the Middle East remained around 80% below year-ago levels, setting the stage for more intense competition between Europe and Asia, the world’s two largest importing regions, for available cargoes. European gas storage stood at 74.62% of capacity as of October 22, the lowest seasonal level since records began in 2009, leaving the region with a limited buffer ahead of winter and increasing its vulnerability to further supply disruptions and stronger heating demand. European gas prices have climbed 4% this week, their fourth consecutive weekly gain.
European natural gas prices extended their rally, rising to €91/MWh on Friday to hit a fresh multi-year high as ongoing disruptions to Persian Gulf supplies kept the global LNG market tight ahead of winter. Reports of US preparations for a possible new attack on Iran after the US midterm elections raised the risk of sustained supply disruptions. LNG shipments from the Middle East remained around 80% below year-ago levels, setting the stage for more intense competition between Europe and Asia, the world’s two largest importing regions, for available cargoes.
European gas storage stood at 74.62% of capacity as of October 22, the lowest seasonal level since records began in 2009, leaving the region with a limited buffer ahead of winter and increasing its vulnerability to further supply disruptions and stronger heating demand. European gas prices have climbed 4% this week, their fourth consecutive weekly gain.