European gas prices rise 5% due to supply issues
The article focuses on the significant increase of 5% in European natural gas prices, driven by rising fears of supply disruptions through the Strait of Hormuz, which accounts for about one-fifth of global LNG trade. This occurs despite Iran's refusal to ease its conditions for opening the strait after the Trump administration's rejection, adding to the uncertainty surrounding energy flows. Prices are affected by market volatility, with the likelihood of rising above 100 euros per megawatt-hour if supply disruptions coincide with harsh cold waves, or decreasing if an agreement is reached to open the strait or if alternative export routes become available. Currently, European gas reserves stand at 71% of capacity, below the seasonal average of 87%, with some major countries, such as Germany, holding only 57%. Experts emphasize that the market remains unstable with ongoing uncertainty, especially as winter approaches and the need to build stocks intensifies.
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