The price of natural gas in major European markets has risen due to intensified military attacks on commercial vessels in the strategic points of the Persian Gulf and the Red Sea. These attacks have heightened geopolitical risks in the energy market, significantly impacting prices.
Price Increases in Various Markets
The price of natural gas in Europe has increased by 2.8% to €80.20 per megawatt-hour (MWh). In the UK, the price of gas has risen by 3% to 199.40 pence per therm. This price increase is due to targeted attacks on commercial tankers and energy ships in the Strait of Hormuz and maritime routes in the Red Sea.
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Impacts on Business Plans
Energy analysts point out that while attacks on oil tankers may provide solutions for continuing trade, LNG maritime logistics return to normal much more slowly. This situation causes the regional gas market to be severely affected by sudden stoppages.
Moreover, war risk premiums and the possibility of rerouting LNG shipments impact the stability of gas returnability programs in Western Europe. However, gas storage capacity in the European Union has increased to 72.83%, improving from 66% last month.
Challenges Ahead in the Cold Season
Given weather forecasts for Northwestern Europe indicating a drop in temperatures and an early start to heating demand, analysts emphasize that current storage levels are still below last year's historical benchmarks. This situation poses greater risks for the market and leaves little margin for error in the event of early winter cold spells.
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