EurOil: European gas prices soar to two-month high

European natural gas prices spiked last week, nearing levels not seen in two months, with the market in the grip of geopolitical concerns, renewed shortage fears and cold weather.

The front-month contract at the Dutch TTF gas hub closed on October 13 at almost €55.3 per MWh ($619 per 1,000 cubic metres), after starting the week at €44 per MWh. The market has taken a jolt from the Israel-Hamas war, which has resulted in Israel cutting gas exports to Egypt, while there are fears that more of the restive Middle East region could be brought into the conflict.

Meanwhile, a leak was found at the Balticconnector gas pipeline linking Estonia and Finland on October 8, and authorities in Helsinki say they cannot rule out that a state actor was involved in its deliberate sabotage. Around a year after underwater detonations rendered the Nord Stream pipelines inoperable, the latest incident has sparked concerns that other critical energy infrastructure in Europe could be targeted.

If you’d like to read more about the key events shaping Europe’s oil and gas sector then please click here for NewsBase’s EurOil Monitor.