HomeMediaLatest NewsThe increase in gas prices is associated with the oil prices dynamics amid the conflict between Israel and Iran

The increase in gas prices is associated with the oil prices dynamics amid the conflict between Israel and Iran

02 October 2024

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to TASS on the consequences of a new round of the Middle East crisis for gas markets.

"If the escalation remains at the current level, the impact will remain subtle. The European gas market and the global LNG market do not depend on supplies from Israel or Iran. The logistics of LNG transportation has already adapted to the threat of attacks from the Houthis in the Red Sea. And the closure of the Strait of Hormuz for civilian vessels, through which LNG tankers from Qatar and the UAE are passing, looks like an extremely unlikely scenario," he said.

"If there will be an impact, it will be through oil prices: exchange prices for gas are not linear and always operational, but take into account their dynamics. I would explain the current short-term surge in prices by this factor," Belogoryev said.

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