Europe got gas: attacks on Iran provoked a jump in prices

The threat of disruptions in LNG supplies from Qatar and the UAE provoked a sharp jump in gas prices to Europe.

On the morning of March 2, gas prices in Europe rose sharply. If last week the cost of supplies for a month in advance on the TTF exchange was around $ 400 per thousand cubic meters, then on Monday the quotes jumped immediately by 18% to $ 477.

How the situation will develop further is unknown. It is known that Iran has announced that the Strait of Hormuz is open. However, two small tankers came under attack and most shipowners do not risk sending ships through the strait. About a hundred ships have accumulated on both sides.

The Persian Gulf is important for the gas market because Qatar is located there — one of the largest LNG producers. Also, the export of liquefied gas is provided by the UAE.

For Europe, the situation is worsened by the fact that storage stocks at the beginning of March were at a minimum in recent years and before next winter. The EU will require additional tens of billions of cubic meters. At the same time, after a decrease in supplies from Russia's LNG has become the main source of gas for EU countries.