Gas price in Europe smashes all-time high

European natural gas prices spiked above $2,200 per 1,000 cubic meters on Wednesday for the first time in market history. The escalating crisis between Russia and Ukraine has raised fears of supply shortages.

The April futures at the TTF hub in the Netherlands soared from around $1,500 to $2,226 per 1,000 cubic meters, or $213 per megawatt-hour in household terms by 09:30 GMT, hitting an all-time high, data from the London ICE exchange shows.

The spike in prices follows sanctions placed on Russia by a number of Western states amid Moscow’s military operation in Ukraine.

A huge increase in applications is raising the price by the minute, Kaushal Ramesh, senior analyst at Rystad Energy, told Vesti. He said it had also been affected by fears of supply outages due to possible damage to infrastructure in Ukraine, through which the majority of Russian gas is delivered to Europe, and the possibility of supply restrictions on Russian oil and gas.