The price of natural gas in Europe hit a record on Wednesday amid concerns from traders that its supply could be disrupted due to Russia's war in Ukraine.
Benchmark futures jumped as high as 194 euros ($215) per megawatt hour. That's a 60% leap versus Tuesday and more than double where prices stood on Friday.
Russian pipe flows to Europe are continuing normally, according to Alex Froley, a market analyst at Independent Commodity Intelligence Services. But there's "a lot of uncertainty and concern about how things could change," he said.
Froley noted that the United Kingdom has banned Russian owned and controlled ships from its ports, which could disrupt shipments of liquefied natural gas from Russia that account for between 3% and 4% of the country's gas supply.
"Traders may be concerned whether continental Europe introduces a similar ban on Russian ships," he said.
As of 2019, the European Union imported more than 40% of its natural gas from Russia — more than any other country.