Natural Gas Jumps 12.9% Since the beginning of the Week

The North American natural gas price (Henry Hub) has already increased by 12.9% this week after the EU continues to consider a ban on Russian energy products such as gas, coal, or crude oil.
Since the beginning of the year, the price of natural gas (Henry Hub) has already risen by 69.38%, and by as much as 140.24% over the year.

The European reference price TTF Dutch has lost 43% since its sharp rise at the beginning of March but has risen 54.34% since the beginning of the year and 466% in the period of one year. For EU citizens facing high electricity prices, this means continued sharp price increases. One of the largest energy service providers in Germany, Eon, has already announced that it will raise electricity prices by an average of 35%. According to the company, wholesale prices for natural gas are up to 20 times higher than in the spring of 2020, while electricity prices have increased eightfold.

The sharp increase in gas prices makes the markets doubt whether Europe will really impose a gas embargo. The cost for middle and lower-class citizens will be too high. Meanwhile, the German consumer center is already warning citizens that the big price hammer for energy prices may not occur until next year because this year the increased additional costs are only represented to a certain extent.

In the meantime, the Russian gas company Gazprom communicated that the ordered gas quantities continue to flow to Europe. However, the payment must now go through Gazprom Bank, because the Kremlin has already announced that it will sell its gas to unfriendly countries only in rubles. Gazprom Bank is a subsidiary of Gazprom. Accordingly, companies should transfer the foreign currency to an account of the bank, which will then exchange the foreign currency into rubles.

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