Gas prices in Europe increase by 30% due to the reduction of Russian supplies

Gas prices Tuesday in Europe rose by more than 30%, after falling supplies from Russia reignited fears of an energy crisis as the region approaches freezing.

Traders said a major pipeline normally used to transport gas from Siberia to Europe on Tuesday was still operating in the opposite direction, sending gas flows from Germany to Poland, while Russian gas supplies from Ukraine to Slovakia also decreased. .

Intense spotlight is on Russia’s energy exports, as the West and Moscow stand out on a larger scale on issues including tensions with neighboring Ukraine, which is strengthening ties with NATO.

Data from Gazcad, the German grid operator, showed that gas supplies through the Yamal-Europe pipeline, which pumps Russian gas westward to Europe, jumped eastward on Tuesday, with gas flowing from Germany to Poland for the 15th consecutive day.

A trader said he predicts very cold weather in Europe contributed in part of the upward pressure on prices, but that low Russian gas flows were the main reason.

Europe has suffered from an energy crisis since last year, when the lifting of restrictions for Covid-19 increased the demand for depleted natural gas stocks.

The price of gas in Europe increased by 17% in contracts future, at $ 1,100 per thousand cubic meters, during trading on Tuesday.

Prices are more than 5 times the price record since January 2021, which has put pressure on consumers and businesses and threatens economic recovery.

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