Futures prices for Front Month gas (November resource) on Thursday during trading rose above €50/MWh, as evidenced by trading data from the ICE exchange.
Compared to the previous day, prices increased by more than 10% and exceeded €51/MWh for the first time since April this year. When translated, the cost of gas is about $575 per thousand cubic meters.
Such an increase is associated with the difficult geopolitical situation in the world; traders are acting cautiously amid potential risks to stable gas supplies, especially after the accident on the Finnish Balticconnector gas pipeline .
Due to military operations in Israel, the Tamar field, from which gas flowed to Egypt and was to be used for further LNG production and export to Europe, was closed, as the country had previously stated that it planned to resume exports, but is now reconsidering its plans.
In addition, uncertainty regarding strikes in Australia contributed to the rise in prices. Chevron and the unions failed to reach an agreement Wednesday and continued wage negotiations through Thursday. If negotiations fail, workers plan to resume strikes at Chevron LNG plants next week, starting October 19.
