In the aftermath of Russia invading Ukraine and the West imposing a plethora of sanctions on Putin’s regime, natural gas prices in EU spiked above $2,200 per 1,000 cubic meters on Wednesday, which is the highest in history.
The main culprit for the huge boost in gas prices is general market fear of supply shortages, as the crisis between Ukraine and Russia escalates.
Data from he London ICE exchange shows April futures at the TTF hub in the Netherlands soared dramatically from $1,500 to $2,226 per 1,000 cubic meters, which is the equivalent of $213 per megawatt-hour in household terms by 09:30 GMT, hitting an all-time high.
The thing is, natural gas is used to produce electricity, and the entire energy sector in the EU is linked together.
Analysts estimate that gasoline prices in the US will reach $9 per gallon when the United States/NATO/the EU will finish delivering the rest of the sanctions on Russia (including kicking them out of the SWIFT system).
Truth be told, we are in uncharted waters here, and there’s not an actual limit on how high energy/oil/gas prices could go.
Even if the stupid so-called “green” governments in the US and EU completely reversed their “zero carbon” policy and decided to reopen the coal mines and gas pipelines, it would take years if not decades, and they don’t really appear to have any plan.
Gas price in Europe smashes all-time high – https://t.co/GHQG6UkOH1 pic.twitter.com/bGpVRcfgVj
— St Vincent Times (@stvincenttimes) March 2, 2022
Eurozone inflation soared in February to a record high of 5.8 percent, mainly on the back of surging energy prices, the EU’s official statistics agency Eurostat said Wednesday. The acceleration, from 5.1 percent in January, was announced as oil and gas… https://t.co/ChaXd9EU2I
— Strawberry NG News (@StrawberryNG) March 2, 2022