Oil Rises While Gas Falls: Energy Markets Shake Amid Middle East War

The price of natural gas on the London-based ICE exchange has fallen sharply, according to trading data.

During trading on Tuesday, March 10, the price of gas based on the TTF hub index in the Netherlands dropped by 19 percent. The price of the fuel declined to 548 dollars per thousand cubic meters.

Extreme Volatility Amid Middle East Conflict

Against the backdrop of the conflict in the Middle East, fuel prices have experienced sharp fluctuations. Since the end of February, gas prices have risen by more than 100 percent.

Before the United States and Israel began their operation against Iran, gas quotations had fallen to around 382 dollars. After the start of military operations, prices approached the level of 820 dollars.

UK Gas Reserves Fall to Critical Levels

It was previously reported that gas reserves in the United Kingdom declined from 18,000 gigawatt-hours last year to 6,700 gigawatt-hours.

This means that Britain could soon face a shortage of gas. According to estimates, the reserves stored in underground facilities would be sufficient to cover only 1.5 to 2 days of active consumption.

Some tankers transporting liquefied natural gas have begun changing their routes and heading toward Asian markets. As a result, the United Kingdom is forced to pay significantly higher prices for supplies.

Oil Prices Continue to Rise

At the same time, global oil prices have accelerated their growth, according to market data.

On Wednesday, March 11, crude oil traded on the London-based ICE exchange rose by more than five percent compared with the previous closing level.

A barrel of benchmark North Sea crude Brent climbed to 92.22 dollars.

Meanwhile, April futures contracts for American WTI crude rose by 5.82 percent. The price reached 88.31 dollars per barrel.

IEA Considers Record Oil Release

Amid escalating tensions in the Middle East and increasing volatility in global oil markets, the International Energy Agency has for the first time in its history proposed releasing the largest volume of oil from strategic reserves.

The proposal is linked to an attempt to soften the surge in prices triggered by the joint US-Israeli military operation against Iran.

According to reports, the proposed volume could exceed the 182 million barrels that member states released from reserves in 2022.