Gas prices are rising.
Natural gas prices in Europe rose sharply yesterday, reversing a downward trend and following a general recovery in global energy markets, as renewed attacks on commercial shipping in the Middle East reignited fears of disruptions in physical supply.
The reference index rose by 2.7% to 86.99 euros per megawatt hour. In the UK, the index also rose by 2.7% to 217.06 pence per donation.
The increase in gas and oil prices emphasizes the dependence of the Gulf portfolio on the situation in the Strait of Hormuz, which is the most important transit artery for crude oil and other cargoes. The renewed maritime standoff effectively paralyzed passage through the strait, forcing traders to consider the immediate threat of LNG supply delays and long-term supply chain issues.
For European energy importers, a stronger dollar significantly raises the dollar cost of LNG supplies, exacerbates geopolitical supply constraints and explains the rise in gas prices on the continent.