Natural gas prices in Europe at year-high

Natural gas prices in Europe rose to their highest level this year on news that Ukrainian troops had seized the key Sudzha gas transit point. Europe’s benchmark natural gas contract rose 5.7 percent to trade at 38.78 euros per megawatt-hour, matching its intraday record from early June. Markets are on alert after news that Ukrainian troops had seized the Russian gas transit point to Europe. It is unclear whether Gazprom will continue shipments through the pipeline despite the troops. Officials briefed on the matter in Ukraine said daily flows through the pipeline will be normal on Thursday. Austria and Slovakia have been the main importers of the pipeline supplies since Gazprom restricted shipments to Germany and other countries in the early months of the war in Ukraine two years ago. Any disruption to gas flows could lead to further price increases, further affecting European consumers and companies facing energy crises due to the war.