Germany Puts Russian Gas Pipeline On Hold, Raising Supply Worry

Germany Puts Russian Gas Pipeline On Hold, Raising Supply Worry

Russia’s troop deployment to two breakaway regions of Ukraine threatens to extend Europe’s energy crisis, after Germany put a major natural-gas pipeline on hold and traders grew concerned Moscow would withhold gas in retaliation.

In Europe, natural-gas prices rose 11% to €80.58 a megawatt-hour, equivalent to $91.40, after the German announcement. Prices of oil—another big Russian export to Europe—rose more than 2%, with futures for Brent crude moving as high as $99.50 a barrel, their highest level since 2014. U.S. natural-gas prices also rose Tuesday, though the move was less pronounced than in Europe. Futures gained 3.8% to $4.60 per million British thermal units. Prices for aluminum, nickel and wheat, all produced in large quantities in Russia or Ukraine, rose too.