(Reuters) – Rising energy prices have caused concern among European leaders. They sent shivers through the global markets Wednesday. This raised concerns about a winter fuel shortage that might be exploited by Russia, which is rich in natural gas.

U.S. oil and natural gas prices reached record highs as China, other large consumers and the COVID-19 decline caused by increased demand have seen their prices rise briefly.

The fear that low winter storage levels could lead to a spike in natural gas prices has caused them to rocket up nearly 600% in Europe. The United States recently reached 12-year highs.

Inflation and rising interest rates are uncertain as surging energy prices have impacted global equity markets. This is especially true in Britain where many energy companies have suffered financial collapses due to the surge.

On Wednesday, the European Union was dominated by energy prices as it faced huge increases in winter fuel bills for consumers.

Ursula von der Leyen (CEO of EU Commission) stated that “gas prices are skyrocketing” and called for an increased focus on renewables.

EU which imports 90% its gas notes that Russia did not follow the example of Norway in increasing its supplies. Von der Leyen on Tuesday said.

On Wednesday, President Vladimir Putin declared that Russia had increased gas supplies for Europe and is ready to stabilize it.

Gazprom (MCX,:)’s deputy CEO was quoted saying that it continued to transport natural gas into underground storage areas in Russia. Gazprom stated this week that it will prioritize its domestic market over export sales, as it expects a snowy and cold winter.

Some EU Parliamentarians claim that Gazprom is not increasing gas supplies in an effort to get quick approval for Nord Stream 2. This new pipeline will deliver Russian gas to Germany. Some European countries and the United States oppose this project because it would make the EU more dependent on Russian fuel.

Russia repeatedly denies any political agenda.

Putin’s press spokesman Dmitry Peskov said that there is no Russian involvement in the events on the gas market.

Next Steps

EU ministers discussed whether to buy gas together in order to increase their bargaining positions and build strategic supply reserves.

Kadri SIMSON, EU energy commissioner, stated that there is no doubt we must take policy actions. She spoke at a EU parliament debate.

Some EU countries have implemented national subsidies or other measures to protect consumers from high costs.

Simson stated that underground gas storage in Europe was over 75% full, with enough for countries to meet their winter requirements. However, the recent price rise has made it clear that there is a need to switch quickly to renewables.

However, EU gas stockpiles are down to a decade low. In Britain, which is now out of the EU and has around 80% gas-heated homes, current storage capacity equals approximately 4 to 5 days of winter gas need, down 15 days.

On Wednesday, the benchmark fell after reaching a multiyear high of $83 per barrel. However, some traders claimed it was temporary. [O/R]

Stephen Brennock, an oil broker PVM stated that there is an energy crisis and winter still has to start in the northern part of the hemisphere.