LNG prices surge 60%, driven by Hormuz closure and low EU storage

Europe and Asia are competing for limited liquefied natural gas (LNG) spot cargoes. The closure of the Strait of Hormuz has disrupted approximately 20% of global LNG supply.

EU gas storage facilities were 36.1% full as of May 15. This level represents a significant deficit from the 49.5% five-year average. European buyers are stockpiling for winter earlier than usual to address these low inventories.

Benchmark LNG prices in Europe and Asia have risen roughly 60% since late February. Analysts expect price volatility to persist as market participants struggle to replenish depleted stocks.