Natural Gas, Not Oil, Is Key Inflation Concern in Europe

Soaring energy prices have rekindled inflation fears in Europe since the Iran war disrupted oil and gas flows, but policy makers and bond markets appear to be more concerned about the jump in natural gas prices rather than the increase in crude oil futures. European benchmark natural gas prices have hit a five-month high in recent days, as Europe scrambles for LNG supply to fill gas storage sites ahead of the winter. Since the Middle East crisis began, Europe has started losing the competition with Asia for spot LNG supply amid spiking prices in…