Key facts
- European natural gas prices reached a four-month high.
- The Dutch TTF benchmark briefly surpassed €60 per megawatt-hour.
- Renewed violence in the Red Sea and Strait of Hormuz is driving supply disruption fears.
- Brent crude oil prices exceeded $91 per barrel.
- Saudi Aramco has been shipping record volumes of crude from its Red Sea port.
European natural gas prices have surged to a four-month high, driven by escalating violence in the Middle East and fears of prolonged supply disruptions. The Dutch TTF benchmark briefly exceeded €60 per megawatt-hour, marking a 50 percent increase from the previous month.
The renewed conflict in the Red Sea and Strait of Hormuz is impacting global energy flows. Houthi rebels have warned shipping companies against loading cargo in Saudi ports, threatening strikes. This has led to Saudi Aramco shipping record volumes of crude from its Red Sea port of Yanbu, with two tankers carrying Saudi crude making U-turns to avoid Houthi drones and missiles.
Further disruptions were seen as the Caspian Pipeline Consortium suspended crude loadings at its Black Sea terminal following tanker attacks. Iran has also reportedly moved significant volumes of crude toward Asia. The Panama Canal Authority is reducing daily transits due to low water levels, adding to global shipping concerns.
In response to market pressures, Egypt's national gas company is reportedly negotiating for substantial LNG imports. Meanwhile, Brent crude oil prices rose above $91 per barrel. In other energy market news, the benchmark LME three-month copper contract reached a one-month high amid shrinking inventories and strong Chinese demand. The UK's new Prime Minister Andy Burnham has announced a cut to household electricity bills.