Gas prices rally once more on news of east Ukraine shelling

European gas prices rallied on February 17 on news of shelling in east Ukraine, offsetting the impact of warm weather and increased imports.

Pro-Russian separatists in the Donetsk and Lugansk regions and Ukrainian government forces have both accused each other of opening fire. Kremlin spokesman Dmitry Peskov has described the events as "disturbing," calling on Ukraine's Western allies to urge Kyiv against further escalation. US president Joe Biden accused Moscow of manufacturing a pretext for invasion.

"We have reason to believe they are engaged in a false flag operation to have an excuse to go in," Biden told reporters. "Every indication we have is they're prepared to go into Ukraine and attack Ukraine."

According to Russia's RIA Novosti news agency, Russia has expelled the US deputy chief of mission to Moscow, Bart Gorman, the second most senior official at the US embassy in Moscow.

The March contract at the Dutch TTF gas hub was up 5.6% as of 16:40 GMT on February 17, trading at €73.7 ($83.8)/MWh.