The European gas crisis is getting worse, Bank of America said.

The gas situation in Europe is rapidly changing from bad to our dread scenario, the bank said in a statement, BI reports.

With the capacity of the Nord Stream 1 gas pipeline at 20%, winter storage capacity may not be enough, and the EU is currently planning a large-scale demand rationing.

Tensions between Russia and Europe have affected the broader energy market, with natural gas futures prices approaching €200 per MWh, close to €300. As Russian supply pessimism grows, European natural gas spot and forward prices are moving into a higher range, Bank of America said.

However, Russia's gas lever is weakening, so the country may decide to use it before it loses it.

Dutch TTF natural gas futures, the regional benchmark, are up nearly 200% this year, compared to prices doubling in the UK and US at the same time.