European gas prices rise to highest since December

European gas prices rose to their highest levels this year after reports that Ukrainian forces had seized a key gas transit point near the border with Russia.

European gas prices settled up 4.8% at €38.45 per megawatt, their highest since December.

These prices will weigh on inflation rates in the 20 countries that use the euro, after rising to 2.6% in July.

It is worth noting that the “Sudzha” station is the last remaining part of the pipeline that carries European gas to Europe via Ukraine, and its control over it could raise the risk of Russian supplies to the continent being reduced.