European gas prices have surged due to concerns that the Middle East conflict might escalate.
Following a rise in oil, key futures saw an increase of up to 6.1%.
Although gas contracts are set for a slight weekly drop after recent downturns, they remain about 35% higher since the October 7 assault on Israel by Hamas.
Middle East war could send oil to $140 a barrel, says Allianz… War in the Middle East could cause the oil price to surge to $140 a barrel and bring the world to the brink of a recession, according to analysts.
Ana Boata, head of economic research at Allianz Trade, said there… pic.twitter.com/0rSdUQFvI5
— Share_Talk ™ (@Share_Talk) October 20, 2023
This price surge followed a significant address by US President Joe Biden from the Oval Office, emphasizing the importance of supporting Israel and Ukraine in their respective conflicts. He warned of potential widespread “conflict and chaos” if the US’s allies were to falter.
Analysts from Rystad Energy informed investors about the substantial risk the ongoing Israel-Hamas conflict poses to the regional gas market, potentially impacting Europe’s LNG supply with winter on the horizon.
Europe’s primary gas benchmark, the Dutch front-month futures, climbed 2.3% to exceed €51 per megawatt-hour. Meanwhile, UK gas prices increased by 3.2%, surpassing 127p per therm.
