Gas Price Surge: Putin's Warning Sparks European Energy Concerns
Benchmark Dutch and British wholesale gas prices rebounded sharply after Vladimir Putin warned of potentially halting Russia's remaining gas flows to Europe, adding to supply concerns. This follows Qatar's force majeure declaration on LNG shipments. European markets face increased pressure amid ongoing geopolitical tensions and a tightening global LNG supply.
- Country:
- United Kingdom
LONDON, March 5 - European gas prices experienced an upswing on Thursday morning, as Russian President Vladimir Putin cautioned about halting gas flows to Europe, leading to supply concerns. This comes amid Qatar's recent force majeure on LNG shipments.
Benchmark prices at the Dutch TTF hub increased by 2% to 49.0 euros per megawatt hour, with earlier spikes reaching 8.3%. Similarly, the British April contract rose 2.1% after a 7.2% increase earlier, according to ICE data.
Vladimir Putin suggested stopping gas exports to Europe could be more beneficial for Russia, as the EU plans a total ban on Russian pipeline gas imports by 2027. Russia once supplied around 40% of the EU's gas, dropping to just 6% last year.
The global LNG market faces challenges amid Middle East disruptions, affecting Asian supply demands. Europe struggles to replenish gas storage, compounded by the U.S.'s inability to significantly boost LNG output due to existing contracts.
Meanwhile, Europe's carbon market also saw a rise, with the benchmark contract up to 72.59 euros a metric ton.
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