European Gas Futures Prices Jump to Over $1,636 Per 1,000 Cubic Metres as Ukraine Tensions Rise

© Sputnik / Alexei Danichev / Go to the mediabankA view of the gas torch. (File)
A view of the gas torch. (File) - Sputnik International, 1920, 24.02.2022
On Tuesday, prices of European natural gas futures hit the $900 threshold per 1,000 cubic metres amid reports that Germany had stopped the certification process for the Nord Stream 2 gas pipeline.
The price of March futures for gas in Europe has skyrocketed to over $1,636 per 1,000 cubic metres, up 60% from Wednesday's indices, according to the ICE exchange as of 15:55 GMT.
Oil prices have also surged, with Brent crude hitting almost $100 a barrel for the first time since 2014. The crude futures dropped to $96.84 per barrel later in the day. The price was at $102.09 per barrel earlier on Thursday, up $5.25, or 5.4%, as compared to previous days.
Thursday’s significant increase in European gas futures prices came after Russian President Vladimir Putin earlier in the day announced the beginning of a special operation in Ukraine aimed at the demilitarisation and denazification of the country.
The move was preceded by Russia recognising the independence of the Donetsk (DPR) and Lugansk (LPR) People’s Republics on Monday, amid the Ukrainian Army’s increased shelling of DPR and LPR infrastructure, which led to civilian casualties and the mass evacuation of women and children to Russian regions.

In a separate development earlier this week, Der Spiegel reported that the German Ministry for Economic Affairs and Energy had halted the certification of the Nord Stream 2 gas pipeline, a process that was suspended by Germany's regulator the Federal Grid Agency in November 2021.

Spiegel's report was followed by European gas futures soaring at least 10% in price to over $900 per 1,000 cubic metres.
The considerable increase in gas prices in Europe began in the spring of 2021, when the benchmark TTF price indices fluctuated in the range of $250-300 per one thousand cubic metres. At the end of last summer, the price exceeded $600, and in early October, it stood at $1,000.
Most experts attributed the rise to the impact of several factors, such as high demand for liquefied natural gas (LNG) in Asia, limited supply from major suppliers, and the low-level capacity of European underground gas storages after a protracted cold winter and a hot summer in 2021.
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