European Gas Rises Again on Mideast Supply Risks

• European LNG deliveries are down 20% year-on-year, with the Hormuz crisis removing a fifth of global LNG supply.
• European natural gas storage levels are below prior seasonal 10-year lows, indicating less aggressive refilling efforts this year.
• Lower gas inventories are expected to increase future natural gas prices, leading to higher consumer utility bills and inflation.
• Diesel prices have jumped to a four-month high due to Ukrainian attacks on Russian refining capacity and Middle East supply disruptions.
• Rising diesel and natural gas prices, essential 'workhorse' fuels for transport and industry, will directly hit consumers and contribute to broader inflation.

The discussion highlights significant upward pressure on European natural gas and diesel prices. LNG deliveries are down due to the Hormuz crisis, leading to lower gas storage levels and anticipated higher prices. Diesel prices are also at a four-month high, driven by disruptions to Russian refining capacity and Middle East supply issues, exacerbating inflation and increasing costs for consumers and industries.