European gas prices surged Tuesday to a six-month peak, exacerbating recession fears as the region faces the prospect of rationing following cuts to Russia supplies amid the war in Ukraine, IgbereTV reports
Oil prices, meanwhile, extended losses a day after tumbling more than five percent on fears demand will subside due to recessions or slow growth in major economies such as China.
Stocks mostly advanced despite the gloomy economic news on hopes central banks will let up on interest rate hikes.
In Europe, the natural gas reference price Dutch TTF rallied around 10 percent at one point to over 250 euros per megawatt hour — the highest level since the start of March, or not long after Russia’s invasion of Ukraine.
“Energy prices are soaring in Europe,” said market analyst Fawad Razaqzada at City Index and FOREX.com.
“Reduced Russian energy shipments of around only 20 percent of capacity through the Nord Stream 1 pipeline have increased the risk of rationing in the coming months,” he added.
Spiking gas prices would likely push European nations into recession, hitting demand for other goods such as oil
