European gas prices spike

Costs have soared to the highest point since March

Natural gas spot prices in Europe have continued to surge, jumping 16% during Wednesday’s trading as fears of an energy crisis on the continent grow.

The cost of September futures on the TTF hub in the Netherlands rose to €302 per megawatt hour, or $3,113 per thousand cubic meters, according to data from London’s Intercontinental Exchange. It is the highest price for natural gas on the European spot market since March 8.

The price rally started late last week, after Gazprom announced that the only operational turbine on the Nord Stream 1 pipeline will be shut down for repairs starting on August 31, with gas transit through the pipeline completely suspended until September 2.

The prospect of a shutdown of the key supply route to Europe comes as the continent attempts to fill gas storage facilities ahead of the heating season. The unscheduled maintenance work exacerbates both the risk of a recession and a winter energy shortage in the EU.

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