The price of gas in Europe is rising as Israel and Iran continue to attack each other
Dutch and British wholesale prices for gas rose mainly on Monday due to the threat of gas shortages and the intensification of the conflict between Israel and Iran.
According to LSEG, the benchmark Dutch front-month contract for the TTF hub increased by 0.51 euros to 38.40 Euro per megawatt hour at 0714 GMT. It reached its highest level in early April.
The price for the day ahead was 38.17 Euro/MWh, up 0.54 euros.
The British contract was 1.91 pence more expensive at 91.47 cents per therm.
Iranian missiles destroyed homes in Tel Aviv, Israel and Haifa, the port city. This sparked fears among the world leaders attending the G7 summit this week that the conflict could spread to other regions.
Iran suspended part of its operations in the South Pars Gas Field on Saturday, after an Israeli attack caused a fire.
The Strait of Hormuz, which is the route through which 20 percent of the world’s LNG transits, could also be blocked if Iran reacts beyond Israeli borders.
The average temperatures in North-West Europe are expected to rise and the wind speed is forecast to decrease, increasing demand for gas.
LSEG data shows that the total Norwegian exports were 53 million cubic meters (mcm), or 253 mcm/day higher than Friday. The majority of this increase was due to exports to Europe.
The North-West Europe LNG export is expected to be down 287 gigawatt-hours (GWh) from the 2,610 GWh sent out on Friday.
The benchmark contract on the European carbon markets was down 0.17 euros at 75.77 euro per metric tonne. Nina Chestney reports.
(source: Reuters)
