European Natural Gas Prices Hit Highest Level Since 2023 as Middle East Crisis Chokes LNG Supply

TLDR

• European gas prices surged over 40% in September, hitting their highest level since early 2023
• Iranian missile strikes damaged Qatar’s Ras Laffan LNG facility, cutting about 17% of its export capacity
• The Strait of Hormuz, handling roughly 20% of global LNG flows, faces severe shipping disruptions
• EU gas storage sits at just 67% capacity, below the seasonal average, ahead of winter
• The European Central Bank raised interest rates by 25 basis points, citing rising energy costs

European natural gas prices have climbed to their highest point since early 2023, driven by disruptions to LNG shipments from the Middle East. The benchmark Dutch TTF front-month contract gained over 40% in September alone, touching 79.64 euros per megawatt-hour before pulling back slightly on Friday.

Prices eased around 2.5% on Friday as traders locked in profits, but the Dutch benchmark still posted a 12.1% weekly gain. That marks a fifth straight week of gains. The UK equivalent contract also rose 12.6% for the week.

… Continue reading the full article at the original source below.