Benchmark European Gas at its highest level in 10 Months due to geopolitical risk

The Benchmark front month contract at the Dutch TTF Gas Hub hit its highest intraday levels in more than ten months Thursday as the Middle East Conflict and reports that North Korean troops were ready to assist Russia in Ukraine kept the traders on edge before the U.S. Presidential election.

According to LSEG, the contract for November deliveries reached 42.57 euros per Megawatt Hour (EUR/MWh), its highest intraday value since December 1, at 0945 GMT.

One trading source stated that "Geopolitical Risk Premium is the main reason for the increase."

Gas prices are still lower than their all-time peak in August 2022, which was 306.00 EUR/Mwh. This spike in gas prices occurred due to Russia's invasion in Ukraine and a decrease in Russian pipeline gas supplies.

The United States announced on Wednesday that it has seen for the first-time evidence of North Korea's sending

3,000 troops

Russia to consider possible deployments in Ukraine. This could be a major escalation of Russia's war with its neighbour.

An exchange of views on the Middle East

heavy fire

Syrian state media reported that the conflict between Israel and Hezbollah increased supply concerns as Israeli strikes hit Damascus in the early hours of Thursday. (Reporting and editing by Marwa Rashed; Nina Chestney).

(source: Reuters)