LAST UPDATE 14:01
The escalation of geopolitical tensions in Ukraine is leading to escalating reactions in energy prices, as the “freeze” of Nord Stream 2 brings a strong jump for natural gas and the general concerns about the supply of crude oil lead it to $ 100.
In particular, the European gas benchmark, the Dutch contract TTF sees its price rise by 12.1% and its price stands at 81.4 euros per megawatt hour.
Following the general course of international markets today, gas pressures had eased at noon, but prices rose again when German Chancellor Olaf Solz announced that he had ordered the “freezing” of the Nord Stream 2 gas pipeline with Russia, after Putin officially recognized the breakaway regions in eastern Ukraine yesterday.
In the same climate, and as geopolitical tensions raise new concerns about pressures on oil supply, Brent April futures are up 2.5%, or $ 2.34, at $ 97.7 a barrel.
It is worth noting that at the high of the day Brent had reached a breath of $ 100 (at 99.5), recording a new 7-year high.
The rise in the American WTI is even more intense, with its own contract in March being at + 3.5% with gains of $ 3.2 and its price reaching $ 94.28 per barrel.
As PVM trader Tamas Varga told Reuters, “the possibility of a rally over $ 100 has now received a huge boost”, noting that “those who bet on it expected an escalation of tension (in Ukraine) .
“We are seeing the oil market go through a period of rapid growth and nervousness, driven by geopolitical fears and emotions,” said Julius Baer analyst Norbert Rucker.
He added that “given the prevailing mood, oil prices are extremely likely to rise to three digits.”
In the headlines affecting energy markets and beyond, Russian President Vladimir Putin said yesterday that he recognized the independence of pro-Russian separatist groups in Lugansk and Donetsk in Ukraine, and then ordered his army to move to those areas as a “peacekeeping force.” ”.
The White House immediately issued a boycott in these areas while more measures are expected today.
European Union officials, meanwhile, have described Putin’s latest actions and statements as a “gross violation of international law”, also announcing sanctions on Russia.
Source: Capital
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