Costs of Gas supplies' contracts are growing following results of the referendum in Crimea on joining Russia.
Chicago's exchanges report that prices for gas supplies due in April from the Henry hub in Louisiana have reached 4.509 dollars per a million British thermal units (BTU) against 4.425 a day earlier. This is about 168 dollars per a thousand cubic metres. The prices of contracts for May supplies grew by 1.7 percent to 167 dollars per a thousand cubic metres.
Investors fear price growth due to the geopolitical tension, which may emerge from possible sanctions against Russia from the EU and the United States.
"This is basically a hydrocarbon version of Mutually Assured Destruction," said Seth Kleinman, Citigroup Inc.'s London-based head of energy research. (Quoted by Bloomberg) "Europe needs Russian energy and Russia needs Europe's money."
The Henry Hub is a gas hub in Louisiana /US/, which receives gas from eight pipelines from different fields. As it receives different kinds of natural gas, the exchange offers a common price. Gas prices at the platform are usually twice lower than gas prices at the European market.
Gazprom sells gas at the European market at an average of 380 dollars per a thousand cubic metres.