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News > World

Gas Futures Prices Soar in Europe Amid Escalation in Ukraine

  • Energy prices sharply higher amid escalation in Ukraine crisis. Feb. 24, 2022.

    Energy prices sharply higher amid escalation in Ukraine crisis. Feb. 24, 2022. | Photo: Twitter/@VennPrimeSec

Published 24 February 2022
Opinion

While Germany has halted the certification process for the Nord Stream 2 gas pipeline, prices of European natural gas futures for March reached $1,636 per 1,000 cubic meters on Thursday.

In accord with reports of the Intercontinental Exchange (ICE), the price of March futures for gas in Europe has rapidly moved upwards. It now stands at more than $1,636 per 1,000 cubic meters, up 60% from Wednesday's rates.

RELATED:
Suspension of Nord Stream 2 Certification Confirmed - Germany

Oil prices have suddenly risen too. Brent crude hits almost $100 a barrel, which hasn't happened since 2014.

Such spike in gas futures prices in Europe follows Russian President Vladimir Putin's announcement of the start of a special operation in Ukraine with the objective of withdraw military forces from the country.  

Russia took this step in response to the request for help from leaders of the breakaway Donetsk (DPR) and Lugansk (LPR) People’s Republics in the middle of Ukrainian Army’s increased shelling. The Donbass region has suffered civilian casualties and had to clear people out to Russian regions.    

 
According to reports from Der Spiegel, the German Ministry for Economic Affairs and Energy halted the certification of the Nord Stream 2 gas pipeline.

Following Spiegel's report, gas futures prices in Europe increased at least 10% to over $900 per 1,000 cubic meters.

Most experts said that the rise is due to the impact of several factors, including high demand for liquefied natural gas (LNG) in Asia, limited supply from major suppliers, and tight capacity in European subway gas storage facilities following a prolonged cold winter and hot summer in 2021.

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