Gas prices in Europe are rising. The market reacts to weather forecasts and the risk of Israeli retaliation

Luc Williams

The Middle East is on the verge of total war

Hezbollah drone exploded next to the private home of Israeli Prime Minister Benjamin Netanyahu on Saturday, and Israel started a new one military attack on Hezbollah strongholds in Lebanon next day. Israel he has already announced revenge on Iran for the missile attack in early October.

Concerns about geopolitical situation had a negative impact on gas prices in recent weeks, additionally emphasizing the susceptibility to fluctuations at the beginning of the heating season fuel prices in Europe. In case gas marketsparticularly important concerns are related to risk closing the Strait of Hormuzgates to Persian Gulf and important waterway for the transmission of liquefied natural gas and crude oil.

The first attack of cold


Volatility has dominated gas prices in Europe. /Bloomberg


Moreover, at the end of the month it is expected significant cooling in Europewhich will put you to the test energy infrastructure region and its powerful gas storage facilities. According to Bloomberg’s weather forecast model, w Temperatures are expected to drop below seasonal norms in London, Paris and Berlin next week.

For now, there is enough gas for everyone

For now, Europe appears well-supplied, with more supplies arriving on its shores LNG. Pipeline flows from Norway they also rebounded. Dutch futures contracts for the next month, which is the European reference point in terms of gas prices, increased by 1.3%. to 39.71 euros per megawatt hour at 8:43 am in Amsterdam.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.