ING’s Warren Patterson and Ewa Manthey report that European natural gas benchmarks are rising as Middle East developments threaten LNG flows from the Persian Gulf.
TTF has broken above EUR50/MWh and continues higher, while Europe heads into the injection season with storage at just 52% of capacity, below the five-year average, and cargoes diverted to Asia by a premium in JKM
TTF breaks above EUR50/MWh “Developments in the Middle East have also seen European natural gas prices surging. TTF settled almost 5.4% higher yesterday, breaking convincingly through EUR50/MWh.” “The market continues to move higher this morning following the US reimposing a blockade on Iran, generating plenty of uncertainty over LNG flows from the Persian Gulf.” “Europe is looking vulnerable heading through the injection season, with storage just 52% full, well below the 5-year average of 68%. JKM’s continued premium to TTF is prompting LNG cargoes to be redirected to Asia, leaving Europe tighter.” Author