UK gas prices have soared to a four-month peak following the shutdown of a major Israeli field in the Mediterranean Sea.
Today, wholesale rates surged up to 10%, reaching over 120p per therm, a significant rise from Friday’s 88p.
This marks the highest price since June, and if it remains, it would be the steepest closing rate since April.
The announcement of a production halt at Israel’s Tamar gas field, vulnerable to rockets from Hamas in Gaza, led to a 15% price increase on Monday.
Further intensifying the price spike today is a report suggesting potential sabotage in the underwater pipeline between Finland and Estonia, as reported by Bloomberg News.
This has reignited worries over energy stability, especially after last year’s Nord Stream pipeline explosions.
Though the Tamar field accounts for less than 1.5% of the world’s liquified natural gas, the ongoing conflict in Ukraine has already strained the market.
Ole Hansen from Saxo Bank mentioned, “The shutdown reduces Egyptian imports of Israeli gas by 20%, with a portion being transformed to LNG and transported to Europe.”
Today, Europe’s leading gas contract elevated by up to 7.3%, reaching its highest since mid-June, following a 15% increase on Monday.
