European natural gas prices rose on Tuesday as focus shifted to concerns of supply from Russia, while questions remain on the pace of demand destruction.
Price Movement: Benchmark futures were trading near EUR 200 per megawatt-hour mark after Russia's Gazprom PJSC (OTC:OGZPY) cut flows on the Nord Stream pipeline to about 20% of capacity last week, Bloomberg reported.
Traders are staring at a lack of clarity on further moves from Vladimir Putin-led Russia as the country has reduced exports to Europe to multiyear lows this summer. The supply is less than a third of normal volumes, as per the report.
Inflation Fears: The curbs put by Russia have sent nations scrambling to stockpile gas ahead of winter. The supply cut has pushed prices to early-March highs while surging energy bills are stoking fears of sending parts of the continent into recession, according to the report.
Gas Storage: European facilities are close to 69% full. Supply from Russia in the coming months along with Europe's ability to ration gas and attract liquefied natural gas from Asia will be key factors going ahead.
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