The price of natural gas has soared to a 13-year high, as fears over scarcity ahead of the winter months intensifies.

October futures for natural gas jumped by more than 10% on Monday to close at US$5.86 per million Btu, marking the sharpest increase since February. November futures were also up on Monday, hitting a fresh high of nearly US$6 per million Btu— the highest since November 2008. Energy prices have been on a steep rise over the past several weeks, particularly as low reserves in Europe and China ignite fears over widespread shortages ahead of the cold season.

The steep rise in natural gas prices has been unprecedented across Europe, and is expected to be even worse than the US oil price shock of the 1970s, according to estimates from Rabobank. European natural gas prices have soared to above $25 per million Btu, which is a staggering 400% more than the average of the past decade, and significantly higher than the commodity’s price in the US…read more.