Rotterdam LNG Bunker Prices Soar Amid Geopolitical Tensions
Rotterdam's LNG bunker price has surged by $70 per metric ton due to rising Dutch TTF natural gas contract prices. The front-month TTF contract has gained roughly 6% over the last seven days, reaching $22.41 per MMBtu or $1,165 per metric ton.
The increase in TTF prices is attributed to heightened US-Iran tensions and worries about energy transit through the Strait of Hormuz. Daniel Hynes from ANZ Bank's commodity team noted that potential supply interruptions from the Middle East are contributing to European gas values.
Additionally, Russian strikes on Ukrainian gas infrastructure have put upward pressure on TTF prices. International Energy Agency analyst Greg Molnar observed that attacks on gas facilities in Ukraine and Romania have fueled extra price volatility in recent weeks.
Norwegian supply issues also contributed to the rally. Unplanned maintenance at the Karsto gas processing plant reduced Norwegian deliveries, while concerns about building adequate winter inventories amid limited EU storage injections added to TTF's strength.