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Gas prices surge towards a new record!

Natural-gas prices in Europe are heading toward their highest closing level on record, as hot summer weather boosts fuel demand and Russia throttles supplies!

Futures for gas at a trading hub in the Netherlands, the benchmark in northwest Europe, are up 5.9% at €239.62 a megawatt-hour, or the equivalent of about $243.44

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If those gains reached again, prices would surpass the settlement high recorded on March 7, shortly after Russia invaded Ukraine.

They are still way below the all-time intraday high of €345, reached on the same day as the invasion sparked turmoil in energy markets.

Prices have gained more than a fifth over the past week. A heatwave has fueled gas demand just as the continent is trying to conserve fuel to get through a winter with little or no supply from Russia.

High prices are taking a toll on energy-intensive industries. On Tuesday, zinc producer Nyrstar said it will idle its Dutch smelting operations from Sept. 1.

Russia, is also taking a hit from cutting gas flows to Europe, long its biggest and most profitable customer.

State gas giant Gazprom says production has fallen 13% this year through mid-August, versus a year earlier.


source:Bloomberg/Eu markets
Image: gazprom