European gas prices jump over 10% after Hormuz talks falter
European gas prices shot up over 10% on Monday after talks to reopen the Strait of Hormuz failed to convince traders that a deal would lead to a quick resumption of global LNG flows.
Hopes were high when Iran and Oman seemed close to a deal, but Iran said an agreement was "very close," but signaled that a deal wouldn't immediately reopen Hormuz.
That's left Europe waiting for the return of crucial LNG shipments just as energy storage is running low.
Europe gas storage under 59%
Europe's energy worries are piling up, with gas storage just below 59% full, well below the usual 76% for this time of year, thanks to both the Hormuz delays and prolonged supply cuts at Norway's Ormen Lange gas field.
With winter less than three months away, Europe could find itself competing with Asia for limited fuel.
Analysts say storage could recover if Middle East exports resume soon, but colder weather from El Nino could make things even tighter.