European and British wholesale natural gas prices rose on Tuesday as market participants assessed continued risks to tanker traffic in the Middle East alongside an increase in liquefied natural gas shipments through the Strait of Hormuz.
The benchmark Dutch front-month natural gas contract gained 3% to €75.74 per megawatt-hour, reversing losses from the previous session.
In Britain, the equivalent wholesale gas contract increased by 3 pence to 189.00 pence per therm.
LNG Shipments Through Strait of Hormuz Increase
The increase in European gas prices followed a quieter start to the week, when market participants considered data indicating higher regional supply flows.
According to maritime tracking data cited in the supplied material, volumes of liquefied natural gas cargoes leaving the Strait of Hormuz increased in September to their highest monthly level since February.
The increase coincided with the partial resumption of regional pipeline networks and loading terminals.
At the same time, drone and missile attacks targeting commercial tankers and energy infrastructure across the Persian Gulf and Red Sea have continued. The supplied material said shipping insurance costs remain elevated and transit routes have become less predictable.
Potential disruptions to maritime traffic remain relevant to European gas markets because LNG cargoes transported by sea supply European regasification terminals.
EU Gas Storage Reaches 72%
European Union underground natural gas storage facilities are currently 72% full, according to data from Gas Infrastructure Europe cited in the supplied material.
That compares with a storage level of 66% at the same point last month.
The increase provides additional stored supply ahead of the winter heating period. However, according to the supplied material, current inventories remain below historical benchmarks.
Future European gas prices could be affected by a range of factors, including temperatures, supply flows and developments affecting maritime LNG transportation.
Leave a Reply