Its European prices gas are moving upward as merchants were prepared for a possible escalation of Israel -collision – Iran and the risks to the global energy supply.
Natural gas reference contracts increased to 1.8% after unstable negotiation at the previous meeting. US President Donald Trump called for the evacuation of Tehran and later stated that his early retirement from the Seven (G7) team’s summit in Canada had no “relationship” with work on the ceasefire between Israel and Iran.
Although Europe seems well -equipped at present, its large dependence on global liquefied natural gas flows (LNG) retains prices prone to abrupt movements when geopolitical raises risks to international energy trade. Epirus needs more than fuel in the coming months for to make up for its natural gas reserves after they fell to a low three -year low this winter.
A key threat comes from Iran’s ability to seal the straits of the hormone if the war escalates, possibly preventing loads from a top exporter of liquefied natural gas, Qatar. It is also a key route for oil supplies from the area, letting traders focus with lasers on tanker movements.
The impact of the conflict on international gas markets is so far limited, according to Goldman Sachs analysts. Moderate imports from China have left more fuel available for other buyers, such as Egypt, which is rushing to find alternative suppliers after Israel has reduced flows.
Separately, traders are watching European Union plans to gradually end Russian supplies by the end of 2027 – both the gas from pipelines as well as LNG – which currently make up about 13% of imports of the area. On Tuesday, the European Commission is going to make public its detailed proposals on flow prohibition.
Dutch time contracts, the European gas reference point, increased by 0.6 %% to 38.12 euros per megawatt hour.