Concerns about events in the Middle East led to the fifth consecutive increase in natural gas prices in the European market. They are the most expensive since last December.
Recent Israeli retaliatory attacks, notably the killing of a Hamas political leader in the Iranian capital, have raised fears of a further escalation of the conflict that has been raging since October, potentially disrupting gas supplies as they replenish supplies ahead of winter.
On Tuesday alone, the price of gas rose by over sixteen percent on the Dutch stock exchange. Yesterday, their price rose by more than one percent, and today, natural gas is becoming more expensive by almost three percent to 41.01 euros per megawatt hour. The last time this price was fixed was at the beginning of December last year.
"Further escalation in the Middle East has shown how quickly gas prices can rise in a day," said Rabobank energy market strategist Florence Schmit.
Bloomberg points out that the situation is further aggravated by a decrease of about 30 percent compared to the average inflow of LNG cargoes to Europe, as well as production interruptions from fields in Norway. Analysts point out that while filling gas storage is sufficient for this time of year, heat waves can increase demand for energy, and therefore gas, by increasing the use of air conditioning.
In just one week, the price of gas on our continent has risen by about twenty-eight percent, and in the last one year – by about forty-three percent.
