European Gas Rises Again on Mideast Supply Risks

Summary

European natural gas prices are rising for a third day as the Strait of Hormuz crisis cuts LNG deliveries into Europe by about 20% year-on-year, removing roughly a fifth of global LNG supply. Stephen Stapczynski explains that Europe is not rushing to refill storage and that lower inventories should keep future gas prices elevated. He also highlights a tightening diesel market driven by Ukrainian attacks on Russian refining and Middle East supply disruptions through Hormuz, with winter demand set to add pressure.

• European gas prices rose for a third day on Middle East supply risks.
• LNG deliveries into Europe are down about 20% year-on-year, removing about one-fifth of global LNG supply.
• Europe is not setting hard refill targets; lower inventories may keep future natural gas prices higher.
• India and some Northeast Asian countries are filling part of the LNG supply gap.
• Diesel prices are at multi-week highs as Ukrainian strikes hit Russian refining and exports.
• Middle East supply disruptions through Hormuz add to diesel tightness.
• Higher natural gas and diesel prices into winter may raise European consumer bills and inflation.