Natural gas prices in Europe increased by 13.2 percent
Interruptions in the Persian Gulf, tensions in the Strait of Hormuz, and low storage occupancy rates pushed natural gas prices up in Europe.
European benchmark natural gas prices rose to 81.48 euros per megawatt-hour under the influence of LNG supply disruptions in the Persian Gulf and geopolitical risks.
Rise in TTF Contracts
October futures contracts at the Netherlands-based TTF, which is accepted as the benchmark for natural gas pricing in Europe, closed last Friday at 71.95 euros.
As a result of market transactions, the price of natural gas per megawatt-hour recorded an increase of 13.2 percent compared to last week's close.
Supply Interruptions and Levels
Natural gas prices are hovering close to their highest levels since December 2022 due to ongoing disruptions in liquefied natural gas supplies from the Persian Gulf.
Supply crunches in the global energy market continue to be among the main drivers triggering the upward movement of prices.
Strait of Hormuz and Military Tension
The escalating military tension in the region directly threatens maritime transport in the Strait of Hormuz, through which approximately 20 percent of global liquefied natural gas flows.
International geopolitical risks continue to be one of the most critical factors determining the direction of prices in energy markets.
Storage Occupancy Rates
According to Gas Infrastructure Europe data, the occupancy rate of natural gas storage facilities in European Union countries was measured at 67.6 percent.
During the same period last year, this rate stood at 79.9 percent, and current low rates are increasing concerns.
Winter Season Expectations
Analysts predict that pressure on prices will persist as heating demand increases during the winter months and competition for liquefied natural gas heats up.
Current supply concerns and low storage occupancy rates keep market risks alive for the upcoming period.