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G Sachs: If Strait of Hormuz Shipping Disrupted for 1 Mth, European Natural Gas Prices May Swell 130%
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If shipping through the Strait of Hormuz is disrupted for one month, European natural gas prices could double, Goldman Sachs predicted in a report. Previously, Iran had warned ships not to pass through the strait, and at least three ships were recently attacked near the area. The broker noted that the benchmark natural gas prices in Europe and Asia have scarcely reflected the risk premium associated with Iran, while approximately one-fifth of the world's liquefied natural gas (LNG) passes through Iran. If shipping through the Strait of Hormuz is disrupted for one month, European LNG prices and Asian spot LNG prices could swell by 130%, reaching USD25 per million British thermal units (per MMBtu). If the disruption extends beyond two months, European natural gas prices could rise to USD35 per MMBtu. AASTOCKS Financial News Website: www.aastocks.com |
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