The rise of natural gas prices in Europe showed no signs of slowing down on Wednesday as the continent continues to exhibit concerns over whether or not it will have a sufficient supply of gas for the impending winter.
After several weeks of bottlenecked supply from Russia, prospects for replenishment in supply remain low following delays in the approval process for Russia’s new Nord Stream 2 pipeline. As the supplier of a third of Europe’s total gas supply, Russia’s diminished supply has resulted in a major blow for the European Union and the citizens it serves.
As a result of these latest developments, the price of natural gas next month in the Netherlands surged by 8% on Wednesday morning to a one-month high of 101.30 euros per megawatt-hour (MWh).
The continuous rise of energy prices in Europe has had a significant impact on inflation rates, an occurrence that may encourage European policymakers to adjust interest rates accordingly.
While Russian supply has dried up in recent days, the silver lining is Russia’s Yamal-Europe pipeline Germany, which proved to remain steady as of Wednesday morning.
