Gas and power prices climbed for four sessions running, hitting their highest 12-month levels since early 2023 due to geopolitical tensions and supply outages.
Market Drivers
- Strait of Hormuz Disruptions: Traffic picked up initially, but an LNG carrier was hit by a projectile and a supertanker was struck off the UAE, reducing transits to a two-month low.
- Supply Outages: Extended outages at Norway’s Dvalin and Heidrun fields added upward pressure mid-week.
- Storage Concerns: European storage sites are around 73% full—the lowest for October since records began in 2011.
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