Uniper CEO predicts higher gas prices while Strait of Hormuz is closed
Uniper, Germany's largest gas importer, said that it expects the price of a megawatt-hour of gas to stay at EUR50 to EUR60 as long as shipping is prohibited through the Strait of Hormuz.
Michael Lewis, after presenting the first-half results of?Uniper to journalists, said that prices would have to drop to reach 70% by November.
As of August 9, German gas caverns had a 48% fill rate, down from 64% one year earlier and below the 59% average for the European Union. This has raised fears that there may not be enough to meet the demands during a harsh winter.
"These high prices, are bad for our customers, bad for industry and bad to our wealth." "We need a solution," Lewis stated on Tuesday. He highlighted the challenges facing Europe and the third largest economy in the world.
Gas prices spiked due to the Iran war, so fuel was sold instead of?stored. The summer is usually the time when gas caverns fill up, and prices are lower. However, the war between the United States of America and Iran has reversed this trend. On Monday, despite a flurry of activity, efforts to reopen the strait that is vital to the transportation of liquefied gas were hampered by a rift between the United States and Iran. Donald Trump responded to Iran's demands for a deal by imposing his own conditions.
(source: Reuters)
