Uncertainty linked to the conflict in the Middle East drives up the price of gas. Punch coming for users
The conflict in Israel has triggered an increase in gas price in Europe, bringing the energy issue back to the center of political attention. Recently, in fact, the Israeli authorities decided to block the extraction of natural gas from the Tamar field, off the coast of Gaza. This move, however, reverberated as far as Amsterdam with an immediate increase in methane prices. And another price hike occurred due to suspicions of sabotage to the gas pipeline which connects Finland and Estonia. The potential implications of the conflict in the Middle East for the European economy, in other words, are likely to have effects even on bills Here in Italy.
the effects of the conflict
—
Italy is facing complex issues geopolitical balances regarding methane stocks. Currently, Algeria represents the main supplier of natural gas to the country, but has expressed a strong support for Hamas after the attack on Israel. Despite the efforts to free ourselves from Russia in Italy’s energy supply, following the war in Ukraine, the latter still remains a indispensable partner; much less important than it once was, but not entirely replaceable. Added to this is the issue of Azerbaijan which contributes to the storage of Italian natural gas through the pipeline Tap but which, recently, invaded the disputed region of Nagorno-Karabach. Although the International Monetary Fund believes it is still too early to assess the effects of the Israeli-Palestinian crisis on the global economy, investors are already smelling uncertainty in the air, which unfortunately results in increased wholesale prices. It is no coincidence that the prices of gold, the safe haven par excellence, have started to rise again.
gas alarm
—
The price of gas in Italy is rising rapidly, as evidenced by the Igi index (Italian gas index) which reached 10 October 41.06 euros per MWh, up compared to 33.29 euros per MWh just the day before. This was reported in a note by GME, the energy markets manager. The Igi index, calculated daily, provides a tool for interpreting and evaluating the dynamics of the gas markets in Italy and is used as a transparent reference by operators to provide the supply contracts.
sabotage hypothesis
—
Last October 8, Finland and Estonia encountered a unusual decrease in blood pressure in the Balticconnector underwater pipeline that connects them, due to a leak. This resulted in disruption of gas flow and subsequent repair work that could take several months. An investigation is currently underway to determine the cause of the leak and, according to sources cited by Bloombergan act of is not excluded intentional destruction. There are no definitive conclusions at this time and further details on the investigation are expected to be provided shortly. But that was enough specter of the sabotage hypothesis to push up the price of gas in Europe, that is rose by 11% at over 49 euros per megawatt hour. Already on Monday 9 October, natural gas futures in Europe had recorded a 7% increaseexceeding 40 euros per megawatt hour, preceded by a further increase of 5.6% on Friday, due to growing concerns about supply.
© ALL RIGHTS RESERVED