Energy prices in global markets continue to rise over Russia-Ukraine war

By Firdevs Yuksel and Zeynep Beyza Kilic

ISTANBUL (AA) - Natural gas, oil and coal prices in global markets reached record levels on Monday over the Russia-Ukraine war.

Natural gas trading on the TTF - the Netherlands-based virtual natural gas trading point - saw a 160% increase over the last 12 days since the start of the Russia-Ukraine war.

The price on March futures contracts, traded on the TTF, had risen to €132.7 per megawatt-hours on Feb. 24, when Russia first announced a military operation in eastern Ukraine.

However, the price of April futures contracts opened at €220 per megawatt-hours on Monday, increasing to €345 at 0830 GMT.

Prices are rising on concerns that the conflict will result in damage to natural gas infrastructure along with the possibility of gas flow being interrupted from Russia's bombing and missile attacks on Ukraine.

- Oil prices at 13-year-high

In the last 12 days since the start of the war, international benchmark Brent crude oil posted a 33.2% increase to $130.71 per barrel from around $98 a barrel on Feb. 24, marking a record high since July 2008.

The oil price increase is driven by new sanctions imposed by Western countries against Russia, as well as possible counter-sanctions by Russia, heightening concerns over supply disruptions.

Several Western energy companies have withdrawn involvement in Russian oil and gas projects since the beginning of the war.

Concerns of a possible embargo on Russian oil, which if imposed would limit global supply in an already tight and volatile market, are also triggering higher oil prices.

- Coal prices increase by 75.1%

European coal futures for April 2022 delivery increased by around 75.1% to $432.5 on March 4. This rise comes amid supply concerns after the Russian invasion of Ukraine, which is one of the largest coal producers in Europe.

API2 Rotterdam Coal Futures for March contracts registered at $247 on Feb. 24.