Iran has intensified attacks on energy infrastructure in the Persian Gulf
Benchmark gas contracts in Amsterdam (ICE Entawex Dutch TTF) are at EUR 51.90 per MWh, 2.0% higher.
Iran has stepped up attacks on energy infrastructure in the Persian Gulf and set fire to large deposits of natural gas, which puts even more pressure on the increasingly tense global fuel supply situation.
Work on the Shah gas field in the United Arab Emirates has been suspended while authorities investigate damage from fires sparked by Monday’s drone strikes.
Interruptions in natural gas supplies
In Europe, there is only an interruption in natural gas supplies a few weeks before the official start of the seasonal increase in stocks of this fuel.
Countries in the region are ending this winter with severely depleted natural gas reservoirs and will be forced to make larger fuel purchases before the next heating season.
“The interruption of natural gas supplies to Europe will change the dynamics of LNG flows for the rest of this year,” wrote Timer Energy analysts in a market note.
What awaits us in the future?
Timer Energy analysts also add that Initially, demand for gas in Asia will increase, as lost supplies of this fuel from Qatar are replaced.
They added that then there will be a stronger demand for gas in European countriesy that will start injecting gas into their fuel storage facilities.
“High gas prices may reduce demand in price-sensitive Asian markets” – said Timer Energy analysts.
Gas prices may increase by 40%.
HSBC Holdings analysts predict that natural gas prices – due to the ongoing conflict in the Middle East – may be 40% higher this year. than previously assessed and may remain high until 2027.
Natural gas stocks in EU warehouses currently amount to 29.0%. compared to the 5-year average at this time of 42.0 percent. – according to data from Gas Infrastructure Europe.
