Saudi Pipeline Shutdown Sends European Gas Prices Soaring Past $1,000
The price of natural gas at Europe's TTF hub reached $1,000 per thousand cubic meters on Monday, exceeding levels seen since December 22, 2022.
This marks a continuation of the trend that started in September, with prices crossing $900 and reaching as high as $991.5 this morning.
The increase was triggered by Saudi Arabia's decision to shut down its East-West pipeline due to an attack on the infrastructure, which is Riyadh's main export route around the Strait of Hormuz.
June Goh, senior oil markets analyst at Sparta Commodities SA, emphasized that the duration of the outage is crucial for the market: 'It all comes down to duration.'
Suvro Sarkar, head of energy sector research at DBS Bank Ltd, predicted a test of the $120-a-barrel level if the shutdown prolongs.