Europe Gas Resumes Scorching Rally as War Disrupts Energy Flows

g({w[aj9y(peg4]8kxiclclr_media_dl_1.png ICEArticle content(Bloomberg) — European natural gas prices resumed their sharpest rally in years as uncertainty around the war in the Middle East continues to rattle energy markets.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBenchmark futures jumped as much as 13% on Thursday. The contracts fell a day earlier as the market weighed the viability of an American plan to ensure safe passage for tankers through the Strait of Hormuz, which has so far lacked details. Traders are still pricing in big supply disruptions around the globe. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentGlobal energy markets have been rocked by the war, which is entering its sixth day with no immediate prospect of a resolution in sight. The trade disruptions are raising the specter of a global energy crisis and sparking inflationary fears. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentEurope’s gas market is particularly vulnerable after prolonged cold stretches this winter depleted already-low fuel reserves. It will need to buy more LNG this summer to refill them, and risks facing stiff competition for cargoes if Middle Eastern supplies aren’t able to reach global markets. Article content“There is no solution is sight for a reopening of the Strait, so the fear of too little LNG supplies are rising by the day,” said Arne Lohmann Rasmussen, chief analyst at Global Risk Management. Article contentEuropean gas spiked to a three-year high earlier this week after Qatar shut Ras Laffan, the world’s biggest LNG export plant, following an Iranian drone assault. Tanker traffic via the Strait of Hormuz has all but ground to a halt, with the route normally accounting for about a fifth of the world’s LNG supplies. Article contentWhile Asian countries buy most of the LNG shipped from the Middle East, any prolonged disruption to flows narrow the pool of available supplies — keeping prices elevated worldwide. Buyers are already scrambling for alternatives: Taiwan says it has secured LNG supplies for April from regions outside the Middle East, while Thailand is seeking extra shipments.Article contentDutch front-month futures, Europe’s gas benchmark, rose 9.2% to €53.26 a megawatt-hour by 8:25 a.m. in Amsterdam. Article contentTrending Bank of Canada governor warns of growing risks to financial stability Economy Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News Legal fight over propane terminal clouds Canada's energy export push Energy US Sinking of Iranian Warship Piles Pressure on India's Modi PMN Business Housing affordability improves yet again, though not for the right reasons Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada governor warns of growing risks to financial stability Economy Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News Legal fight over propane terminal clouds Canada's energy export push Energy US Sinking of Iranian Warship Piles Pressure on India's Modi PMN Business Housing affordability improves yet again, though not for the right reasons Real Estate