Two Reasons European Natural Gas Prices Climbed So High

European natural gas prices have recently increased by about 400% after a five-year period of relative stability. There are several factors cited: a rapid rebound in gas demand in an improving post-Covid European economy, a sharp rise in carbon taxes in Europe, and uncertainty of supply. Regardless of the cause, a sudden spike in energy prices of this magnitude presents an immediate burden for consumers and an issue for politicians. Across Europe, the range of political responses has varied from a proposed profit clawback in Spain, price caps in…