Gas prices soar at a 13-year high

News of the day, Tuesday, April 12

While the Ukraine conflict is likely to escalate, European inflation climbs steeply. As investors consider soon key central banks meetings, European stocks trade sharply lower on Tuesday. DAX in Germany decreased by 1.9%, the UK’s FTSE 100 declined by 0.9%, and CAC 40 in France rose by 1.9%. On Thursday, the European Central Bank holds a policy-setting meeting, while German consumer price inflation increased by 2.5% in March, making the yearly rate 7.3%.

US natural gas futures reached the highest level in 13 years, with such prices unseen before the shale revolution uncovered the nation’s fuel reserves. Gas traded at 5.8% higher in New York on Monday. Spring in the northern US is colder than usual, thus fuel divert is expected. As now the inventories are supposed to be refilling, the traders are getting worried there will be not enough gas when the next winter starts.

The price of Brent crude is $101.80, WTI — $97.30, GBP/USD — 1.3003, EUR/USD — 1.0866, and gold costs $1950.40 per ounce.