European Gas Prices Climb to Highest Level Since Conflict Began
(MENAFN) European natural gas prices crossed the €100 ($111.3) per megawatt-hour threshold for the first time since 2022, reflecting growing concerns about energy supplies amid escalating tensions in the Middle East.
At 1530 GMT, the European gas benchmark had gained 4.35% to reach €100 per megawatt-hour (MWh), before trading slightly below that level.
The intensifying regional conflict has raised concerns about the availability of energy during the coming winter, particularly as liquefied natural gas shipments from the Persian Gulf face uncertainty. The region previously supplied nearly one-fifth of global LNG volumes.
The supply concerns have contributed to price increases across several markets, including crude oil, transportation fuels, natural gas, electricity and food.
Brent crude futures also advanced 2.2% to $116 per barrel, while heating oil prices rose 1.6% to $4.8 per gallon.
Market participants anticipate that European gas prices could remain high for at least another year, even if hostilities come to an end and winter temperatures remain moderate. Europe will still need to rebuild its gas reserves after storage levels fell to record lows.
At 1530 GMT, the European gas benchmark had gained 4.35% to reach €100 per megawatt-hour (MWh), before trading slightly below that level.
The intensifying regional conflict has raised concerns about the availability of energy during the coming winter, particularly as liquefied natural gas shipments from the Persian Gulf face uncertainty. The region previously supplied nearly one-fifth of global LNG volumes.
The supply concerns have contributed to price increases across several markets, including crude oil, transportation fuels, natural gas, electricity and food.
Brent crude futures also advanced 2.2% to $116 per barrel, while heating oil prices rose 1.6% to $4.8 per gallon.
Market participants anticipate that European gas prices could remain high for at least another year, even if hostilities come to an end and winter temperatures remain moderate. Europe will still need to rebuild its gas reserves after storage levels fell to record lows.
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