The European gas price has fallen again due to decreasing concerns about the supply from the Middle East. Previously, the price of fuel had risen sharply. This was because Israel will no longer supply gas to Egypt for the time being as a result of the conflict with Hamas. In that country, Israeli gas is converted into liquefied natural gas (LNG) intended for the European and Turkish markets.
According to expert Hans van Cleef of the Dutch energy consultancy Public Affairs, Egyptian LNG exports to both markets account for 5 percent of the total European and Turkish supply. If the conflict continues, Israeli gas production will remain low, according to Van Cleef, meaning there is a significant chance that no LNG will flow from Egypt to Europe this winter. However, according to the energy expert, the impact for Europe appears to be limited for the time being.
46.69 euros per megawatt hour
On the Amsterdam gas exchange, the price for deliveries in November fell by almost 3 percent on Wednesday morning to 46.69 euros per megawatt hour. On Tuesday, fuel became more than 9 percent cheaper. On Monday morning, the price had just risen to around 53 euros per megawatt hour.
The price of gas is still above the level before Hamas’s attack on Israel on October 7. In the week after that attack, gas prices even reached their highest level since February.
© Shutterstock / Mike Mareen
The price is miles away from the historical record of 345 euros per megawatt hour in August 2022. On the other hand, gas is still more expensive than in the years before the Russian invasion of Ukraine: before the energy crisis, around 20 euros per megawatt hour was the normal price for years. price level.
Traders are closely monitoring the possible consequences of the war between Israel and Hamas on gas supplies. Diplomatic efforts to prevent the war from spreading across the region continue. Eurasia Group, a political risk consultancy, estimates there is a 70 percent chance that the war will remain under control. Europe is also entering winter with full gas reserves, which have not yet been used thanks to the predominantly mild autumn weather.
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2023-11-01 10:41:55
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