The benchmark price of European natural gas has broken through the $600 mark, finally allowing Europe to enjoy a "luxury lifestyle" where natural gas is as precious as a luxury good.
The average price on the European Natural Gas Exchange in March rose 59% month-on-month, reaching $631.9 per thousand cubic meters. This surge is linked to escalating tensions in the Middle East. For the first time since February 2023, prices have surpassed the $600 threshold. For comparison, the monthly average price in January 2023 was $711.6. The upward trend began on March 2, when prices surged by 38.2%, approaching the $540 level.
Prices have remained above levels seen over the past two years due to the closure of the Strait of Hormuz and the shutdown of certain natural gas infrastructure in the Middle East. On March 19, prices hit a local peak of $853.7 per thousand cubic meters, driven by a statement from Saad al-Kaabi, CEO of QatarEnergy, who reported that two of Qatar’s 14 liquefied natural gas (LNG) production lines had been damaged.
Oil product prices are also rising. The average price of diesel in France has climbed to €2.18 per liter, setting a record high since 1985. EU Energy Commissioner Kadri Simson has urged Europeans to reduce driving and air travel to conserve fuel amid the energy crisis.
Original source: toutiao.com/article/1861257129409543/
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