Oil and Gas markets have opened with a ‘knee-jerk’ surge this morning following escalations in the ongoing Israel-Hamas conflict in the Middle East over the weekend.
In the wake of the attacks launched by Hamas militants from their Gaza stronghold against southern Israel, volatility has returned to the Gas market with the most significant price increases being seen in immediate short-term pricing this morning. Although volatility has hit the market, causing suppliers to pull several pricing curves as markets rise, increases have not been as significant as seen with previous conflicts, this is likely a reflection that the violence holds little immediate threat of interrupting global oil supplies.
The volatility and increases seen on the gas market are a reaction to the spike in oil prices, markets will see some additional risk factored in until the market is satisfied that the events over the weekend will not set off a chain reaction affecting oil supply from the Middle East. Whilst Israel and Palestine are not major oil players, the conflict sits in a wider key oil-producing region. Ongoing unrest or further escalations may cause more price volatility and supply concerns in the coming weeks/months, resulting in increased rates as we head into Winter 23.
Our Teams continue to monitor the market and will be in touch with any of our clients directly impacted to discuss the next steps. If you have any concerns or questions, please feel free to contact our Procurement Team on 01252 878722 or email firstname.lastname@example.org.