The price of liquefied natural gas (LNG) on Monday reached $30.4 per million British thermal units (BTU), marking the highest figure since December 2022. This price surge clearly reflects the impact of recent developments in the energy market, particularly in LNG supply in Asia.
Military Movements and Their Impact on the LNG Market
The UK Maritime Trade Operations (UKMTO) released a report regarding gunfire directed at an LNG-carrying vessel near Yemen. This incident is part of an increase in attacks on oil and gas vessels in the Red Sea and the Strait of Hormuz, which has heightened concerns about the LNG supply situation in the region.
The military aggression of the United States and the Israeli regime against Iran has disrupted LNG production in Qatar. This country, which previously supplied about one-fifth of global supply, is now facing challenges that have made it difficult to secure LNG shipments for buyers. As a result, buyers have been forced to turn to the spot market, which has higher prices.
Increased Demand and Intense Competition in the Market
As demand rises ahead of winter in the Northern Hemisphere, Asian buyers continue to purchase spot cargoes at high prices. This situation has intensified competition with Europe for the acquisition of super-cooled fuel. Currently, the level of gas reserves in Europe has reached 75% of storage capacity, while its five-year seasonal average has been 89%.
According to available reports, the energy crisis has led to increased electricity bills for households and heightened inflation, forcing some economies to rely on coal. The South Korean energy minister has also announced that the country will turn to nuclear energy and coal to cope with the surge in electricity demand during winter.
These developments indicate serious challenges in the global energy market and could have profound effects on prices and energy supply in the future.
Read more: Mohammad Ali Dehghan Dehnavi: Iran has the capacity for daily exports of one billion dollars · Estimated $22 billion in oil revenue for Iran under sanctions
