As US natural gas prices rise to a 14-year high, Europe’s natural gas crisis is being fueled by the Old Continent’s dependence on Russian energy.
Moscow, for its part, has reduced the amount of natural gas supplied to Europe in response to sanctions imposed by the West. The European Union has been forced to draw up plans to ration natural gas, a drastic step expected to hurt households and businesses.
Natural gas prices have risen so much in Europe that the continent’s economy is at risk of going into recession.
Recall that natural gas prices in Europe are trading at levels equivalent to about $70 per million BTU, according to Andy Lipow, president of Lipow Oil Associates. So, seven times higher than the prices in the United States.
But that’s little comfort to Americans facing high prices at grocery stores, clothing stores and restaurants, CNN reports.