Natural gas market volatility puts Canada and Europe on a very different footing

Putin’s invasion of Ukraine had a significant effect on natural gas markets worldwide. At that time, Russia accounted for approximately 40% of Europe’s natural gas consumption, the majority of which flowed through pipelines in Ukraine. In response to the West’s sanctions, Putin weaponized energy, disrupting the flow of natural gas and causing volatility, but prices have since stabilized as the market ascribed a low probability to a flow disruption. 

Portfolio managers, Sara Shahram and David Mann provide perspectives on how both Canada and Europe were impacted by the headwind of skyrocketing natural gas prices and rapid inflation.

See Sara's previous commentary on natural gas from October 2021 for further additional context.