Announcement by Germany's Baerbock on Nord Stream 2 Drives Prices Skyward

The cost of natural gas on Tuesday rose to a dizzying $1,400 per 1,000 cubic meters, following the Monday announcement by Germany’s Foreign Minister Annalena Baerbock that the Nord Stream 2 pipeline could not be greenlighted for launch. Immediately, gas prices jumped around 10% on Monday. Baerbock explained that the pipeline didn’t comply with EU energy law—and then added that tensions over Ukraine were “also a factor” in the delay. The reasoning? Berlin agrees with Washington that Russia cannot use the pipeline as a weapon against Ukraine. By 7 a.m. local time, Netherlands’ TTF hub had January futures for natural gas at $1,428. Translated for households, it amounts to $138/megawatt-hour. “That should teach them Russians, all right!”