European Gas Prices Surge Sharply
European gas prices rose to their highest level since 2022 due to Middle East supply concerns and Exxon Mobil's growth forecasts.
Translated by Qiyas from الجريدة — Original source
European natural gas prices rose during today’s trading, reaching their highest levels since the end of 2022, amid growing concerns over gas supplies from the Middle East and ongoing tensions in the Gulf region.
The price of the standard European natural gas contract, TTF, for delivery one month ahead, surged more than 5% at the start of trading on the Amsterdam exchange, reaching 83.75 euros per megawatt-hour, equivalent to approximately $97.13, marking its highest level since late 2022. Investor anxiety has intensified over the prospect of prolonged disruptions to liquefied natural gas (LNG) supplies, particularly given the closure of the Strait of Hormuz, a vital chokepoint for global energy shipments. Additionally, a meeting scheduled for tomorrow between Iran and several Gulf states to discuss the situation in the strait was postponed, further heightening market concerns about the future of energy supplies.
European gas prices have tripled since the beginning of the year, as the crisis involving Iran continues to impact global energy flows, while Europe faces pressure to replenish its gas reserves before winter.
Traders fear that any prolonged supply disruption could intensify global competition for LNG shipments, potentially driving prices even higher in the coming months and exacerbating challenges for European economies.
Meanwhile, Peter Clark, Vice President of LNG for ExxonMobil Upstream, stated that U.S. LNG supplies are projected to grow to account for about 30% of the global market by 2030, reinforcing the United States’ position as one of the world’s leading fuel suppliers.
Speaking at an energy forum in Bangkok today, Clark noted that the U.S. has emerged in recent years as a major LNG supplier.
