Closing the Red Sea to shipping will affect oil prices and, to a lesser extent, gas prices. This was reported by RIA News Citing the opinions of BCS World of Investments analysts.
Analysts at BCS World of Investments predict an increase in liquefied natural gas (LNG) prices in Europe, given the situation in the Red Sea, where tankers are diverted from their routes due to threats of attacks by the Yemeni Houthis.
According to them, the Red Sea issue is more important for oil than LNG. However, Qatar is one of Europe’s major gas suppliers and its alternative route is longer.
“It is impossible to say the specific impact on prices, but it will likely increase,” analysts said. TTF futures rose nearly 13% on Monday.
Gas prices in Europe fell 8 percent to $369 per thousand cubic meters on Tuesday. At the same time, the average price in November was 510 dollars per thousand cubic meters.
It was learned yesterday that gas storage facilities in Europe are full fallen below 89% due to increase in uptake.
Previously at Gazprom stated About the decline in gas demand in the EU.