Rising fuel prices could cause a recession in the continent's economies.
According to CNN on Wednesday, citing Lipow Oil Associates, European natural gas prices are currently trading at levels comparable to around $70 per million British Thermal Units (BTUs), which is roughly seven times higher than pricing in the United States.
Analysts told the publication that while the natural gas issue in Europe is a factor in rising prices in America, it is not the primary cause. The price of US natural gas rose to levels not seen since 2008 on Tuesday, finishing at $9.33 per million BTU.
"Higher worldwide pricing are gradually affecting US prices. With the introduction of LNG, natural gas has become a commodity on a worldwide scale, according to Rob Thummel, senior portfolio manager at Tortoise Capital Advisors.
To lessen the effects of falling Russian natural gas deliveries to Europe, the United States has increased its LNG exports to that region.
“Every spare molecule we can find, we are shipping to the Eurozone,” Robert Yawger, vice president of energy futures at Mizuho Securities, said.
Due to declining Russian flows, European gas prices have doubled since the year's beginning. For the first time since March, gas futures prices on the Dutch TTF hub this week hit $2,600 per thousand cubic meters. This winter, prices are expected to increase by 60% and surpass $4,000 per thousand cubic meters.