Early last week Natural Gas prices headed to highs not seen since 2008 and for a moment hit over $8 per MCF. However, this was to be the high moment with steep declines for the remainder of the week. So what next? What is driving gas prices right now?

The EU and Russia are at odds over Putin’s demand that Russia’s “unfriendly” countries, such as the UK and all EU members, pay in rubles for Russian gas. This is due to the fact that there has been an increase in European demand for gas because of the lower wind speeds. Europe is now preparing for a possible halt in Russian gas supply with April delivery payments due in the next days and weeks.

These worries are affecting prices globally and consumers are being hit hard. For instance, a survey of UK households revealed the extent of the impact of an increase in electricity and natural gas prices on consumers. This has led to inflation reaching a 30-year high.

The UK government is being pressured to offer more assistance to the most vulnerable households, but it remains to be seen what help they will offer.

Oil prices have calmed a little since the highs they hit when the War in Ukraine first began, but Natural Gas is still heading higher overall. Unfortunately there isn’t anything to suggest high prices will fall soon.