Brent reaches five-month high as European gas prices hit 2022 peak

Energy prices continued to rise on Friday as geopolitical supply risks pushed Brent crude to its highest level in more than five months and European natural gas prices to their highest since December 2022, Anadolu Agency reported.

At 06:30 GMT, international benchmark Brent crude was up 1.14% at $114.47 per barrel. European natural gas prices had risen 1.37% to €91.28 ($102.40) per megawatt-hour.

Oil prices advanced amid escalating attacks on Saudi targets and reports of possible renewed US strikes against Iran, raising concerns about energy supplies from the Middle East.

The Yemeni Houthi group claimed responsibility for recent attacks on Saudi Arabia’s Red Sea port of Yanbu, alongside deadly strikes targeting an oil field and an airport.

Reports cited in the commentary said the US and Israel had drawn up plans for renewed attacks after next month’s US midterm elections, potentially targeting Iran’s energy infrastructure.

Despite rising regional tensions and threats to shipping through the Strait of Hormuz, Gulf crude exports have rebounded close to prewar levels.

European gas prices extended their rally as disruptions to Gulf supplies kept the global liquefied natural gas (LNG) market tight ahead of winter. Middle Eastern LNG shipments remained around 80% below year-earlier levels, according to the platform, increasing the prospect of stronger competition between European and Asian buyers for available cargoes.

European gas storage stood at 74.62% of capacity on Oct. 22, the lowest level for this time of year in records dating back to 2009. Low inventories leave the region with a limited buffer ahead of winter, increasing its vulnerability to further supply disruptions and stronger heating demand.

European gas prices have gained around 4% this week, putting them on course for a fourth consecutive weekly increase.