Energy prices surged after Russian President Vladimir Putin signed an order to send what he called “peacekeeping forces” to the two breakaway areas of Ukraine that he officially recognized on Monday.
European natural gas led the gains with as much as 13% rise, helped higher by Germany halting the approval process of the controversial Nord Stream 2 pipeline. Brent oil closed in on $100 a barrel, and power and coal prices rose. Moscow’s move is a dramatic escalation in the standoff, with the U.K. responding by sanctioning five Russian banks and the European Union planning to restrict access to its financial markets. The U.S. said it plans to announce new restrictions as soon as Tuesday.
[time-brightcove not-tgx=”true”]
Read more: Fear Of War Grips Europe As Russia Orders Troops Into Ukraine
There were no details on how many troops might go in, or when, but a conflict could threaten Russian energy supplies. The country is the biggest provider of gas to Europe, about a third of which typically travel through pipelines crossing Ukraine, and a major exporter of everything from crude oil to refined products.
Sanctions could also disrupt energy flows, with any curbs to Russia’s ability to trade in foreign currency having the potential to upend commodity markets from oil and gas to metals and agriculture.
“This means yet higher gas prices for longer as the market has already been very nervous for months,” said Katja Yafimava, a senior research fellow at the Oxford Institute for Energy Studies. “Some U.S., EU sanctions are likely to follow.”
Dutch gas futures, a European benchmark, were 8.4% higher at 78.63 euros a megawatt-hour by 2:26 p.m. in Amsterdam. Brent crude jumped to a high of $99.50 a barrel, before easing to $97.58. German power for next year increased as much as 6.6% and European coal rose 7.9%.
Energy Crisis
Energy markets have been on edge for weeks, swinging with every twist and turn in the standoff between the West and Moscow. Europe has been grappling…
Source : time
