European gas prices hit their highest level in more than 3.5 years
Natural gas prices in Europe rose to their highest level in more than three and a half years on September 8 amid disruptions to liquefied natural gas supplies from the Persian Gulf. The benchmark European gas contract increased by 4.5% to 76.7 euros per megawatt-hour, or $89.1, as of 17:20 GMT.
Disruptions due to the Strait of Hormuz
According to Anadolu Agency, rising tensions between the United States and Iran are complicating efforts to reach an agreement that could restore normal shipping through the Strait of Hormuz. This waterway is an important route for global supplies of oil and liquefied natural gas.
On September 7, Iran warned that energy infrastructure in the region, including U.S. oil and gas facilities, could be vulnerable to further attacks amid intensified hostilities between Tehran and Washington.
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EU gas reserves
Qatar, one of the world's largest LNG exporters, has largely suspended shipments and extended force majeure for cargoes destined for European and Asian markets throughout the autumn. Reduced LNG inflows have slowed gas injections into European storage facilities ahead of the winter heating season.
European Union gas storage facilities are approximately 66% full, below the seasonal average. This makes the European gas market more vulnerable to new supply disruptions and colder-than-normal weather.
