On Friday, the wholesale prices of Natural Gas in Europe reached the highest level of more than a week. The prices in the week recorded a huge range of around 12%. The biggest cause of this sudden eye fast is to close the way between the U.S. and Iran and begin new military attacks in the Persian Gulf, leading to the fear of stopping the supply in the winter suddenly deeper
THE FRONT-LENGTH CONTRACT OF THE EUROPEAN BENCHMARK DUTCH TITLE TRANSFER FACILITY (TTF) ROSE 4.2% TO 96.18 EUROS PER MW-HOUR. ON THE OTHER HAND, THE UK’S NATIONAL BALANCING POINT (NBP) CONTRACT ALSO CLIMBED 3.8% OFF AT 239 PER THERMO
On Friday, this tremendous fast led to 12% of the week’s growth in both major gas hubs. The most noticeable thing is that the European gas market went towards a different direction from the crude oil trends in a whole. Raw oil where the oversupply had a second week of damage under pressure, has found a vigorous purchase in natural gas
Trump’s Statements Toddler Diplomatic Expectations
In the European gas market, this stormy bullying began after an extremely strict political statement from Washington, which also eliminated the child-selling expectations of the agreement from the market
US President Donald Trump wrote on Truth social on Thursday that Washington no longer needs any agreement with Tehran. The Trump said that the U.S. has already made a string of economic pressure on Iran and has set up its strong control over the strategic path of the extremely important Hormuz Jaldambad
In recent times, the trembling of the ongoing conversations through the backchannel, the Vice President JD Vance directed that he completely closes the conversation with Iran and put his entire attention only on US domestic issues. Also Washington also cleaned that the US naval blockade on Iran’s trade and oil supply will continue strictly and the economic sanctions will also continue as before
Increased attack and tension in the Gulf region
This aggressive stance of the White House provoked the tension already released in the Gulf region. In the last few days, the hopes that had been tied were completely bullyed due to military attacks
Hazard bells on the framework associated with energy supply, when Yemen’s Iran-backed Houthi rebels attacked Saudi Arabia’s bases and targeted crude oil tankers passing through the Gulf
On Friday, the crisis went deeper when Iran’s Revolutionary Guards claimed that they have attacked an American Early-Warning Radar station in Bahrain. This is the first big claim of direct attack on US military assets in the Gulf country after the beginning of September. The Iranian guards say that this attack was a direct change of the alleged airstrike on the telecom tower in the southern Siri County of Iran
Bounce in Risk Premium despite storage is filled
Gas reserves at the moment of view of the existing basic supply is stable and the EU gas storage is filled up to 71%. Despite the increasing threat of war in the Gulf has completely neutralized this technological relief
THIS 71% OF STORAGE FOR EUROPEAN UTILITY BUYERS AND LNG HEDGING TRADERS HAS BEEN PROVEN TO BE UNHAPPY TO DEAL WITH A MAJOR CRISIS. TRADERS ARE GOING TO ADD HEAVY GEOPOLITICAL RISK PREMIUMS TO WINTER CONTRACTS BY CLOSING THE WAY OF NEGOTIATIONS AND BECOMING DIRECTLY AFFLICTED ON US BASES IN THE GULF. THE BIGGEST FEAR IN THE MARKET IS THAT IF THE STRUGGLE IS INCREASED, THE COLDS OF THE KADAKS IN THE NORTHERN HEMISPHERE BEGIN AS SOON AS THE LIDIFIED NATURAL GAS (LNG) MAY BE COMPLETELY CURED
Market vastness and accurate analysis needs
The financial report of the companies in the stock market is readable and making opinions based on data is possible for any general investor to have a handful of shares. It’s not easy to find the right spot from over 72,000 stocks around the world today. In a round where data is analyzed on more than 100 financial scales, it can protect investors from big risk at the right time in sensitive sectors such as energy and commodities
Conclusions for Natural Gas Traders:
The Natural Gas market is not only on demand and supply at this time, but purely on the Battle Crisis of the Middle East. Traders are deeply afraid of further supply choke despite having 71% of storage capacity. Unless the tension on the Persian Gulf and the Hormuz Root is low, the natural gas prices will remain heavy fluctuations. Traders should avoid any aggressive short position in this winter season and keep a pan on geopolitical news