European gas prices have surged above €100 a megawatt-hour for the first time in almost four years as markets brace for renewed US strikes on Iran and a possible cold snap in Europe.
Dutch natural gas for delivery in November rose 2.9 per cent to €100.30 per MWh on Wednesday, a level last touched in December 2022 during the European energy crisis following Russia’s full-scale invasion of Ukraine. President Donald Trump has indicated the US may strike Iran after the midterm elections on November 3, raising expectations of further curtailment of LNG shipments from the Middle East.
The US has told Gulf Arab countries to prepare for a short, intense military campaign against Iran after next week’s midterms, the Wall Street Journal reported. Traders are also weighing weather forecasts predicting a cooler winter, driving demand for gas. This would push up consumption at the start of Europe’s peak demand season when gas storage facilities are emptier than usual.
LNG exports from Qatar are likely lower in November and December due to escalation in the Iran war, consultancy Energy Aspects said. Benchmark gas prices have gained 38 per cent this month, with December delivery prices implying a 73 per cent probability of Middle Eastern LNG supply shortages this winter, up from 51 per cent last week.
Source: Financial Times Companies · Summarized by HeadlinesBriefing