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Europe Gas Settles Just Shy of Record as Energy Misery Piles Up

  • Hot, dry weather is shrinking rivers, hampering energy transit
  • Russian gas flows are heavily curbed, LNG demand in Asia rises
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Gas Intensive Industries Feel Impact of European Energy Crisis
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Natural gas advanced to settle just below a record as a scorching summer in Europe triggers higher-than-normal demand, exacerbating an energy crisis that’s threatening to push major economies into recession.

Benchmark futures closed 2.6% higher, while electricity prices surged to an all-time high. Hot and dry weather is causing river water levels to drop rapidly, hampering the transport of energy commodities. It’s likely to force utilities to use more gas as a replacement at a time when supply from Russia continues to be limited.