The European energy crisis shows little sign of mitigation. The natural gas market, which is the root cause of the problem, remains tense as supply is scarce and traders question the continent's fuel supply for the cold and uninterrupted winter.
The buildup of Russian troops at the border with Ukraine, where Russian gas flows west, also raises concerns about whether gas will run out. Even small amounts of gas from Russia, Europe's main source of fuel imports, have led to higher prices in recent months.
There is a risk of supply shortages that can undermine economic growth and cause public discord, said Henning Groystein, director of energy and climate at the political risk company Eurasia Group. He added that if so, a power outage could occur. Be. If things get worse, Gloystein said the government can order factories to reduce gas usage so that homes can stay warm enough.
On Tuesday, gas from the Dutch TTF trade hub reached a record level of about $60 per million British thermal units after reports of a flow back east on a pipeline carrying Russian gas to Germany. (Europe's gas prices will double this month, about 15 times that of gas sold in the United States.)
Gloystein said this turnaround is opportunistic rather than an ominous operation on the Moscow side. He said it may reflect the trading activity. The fact that the European natural gas market is ready to skyrocket with a slight provocation.
Due to tensions between Russia and the West over Ukraine, it is unlikely that the huge Nor Stream 2 pipeline from Russia to Germany will open in the near future and bring relief. Karen Donfleet, Assistant Secretary of State for European and Eurasian Affairs, told reporters on Tuesday that Washington called Nor Stream 2 energy security and national security for an important part of the Euro Atlantic community. He said he sees it as a "Russian geopolitical project to strengthen."
Don fleet said the United States is working closely with the new German government to strengthen Europe's energy security. But while high prices are attracting the influx of liquefied natural gas into Europe, analysts say supply may not be sufficient to replace Russian gas or mitigate the crisis. Since gas is an important source of energy for power generation, electricity prices are also exploding across Europe. In the UK, for example, Steady Power traded on Tuesday for around £340 and about $450 per megawatt-hour. This is a wholesale indicator for Apex Spot Exchange. This is about three times the average annual electricity bill.
Soaring gasoline prices in the last few months will ultimately lead to higher energy costs for households in the UK and other countries. Martin Young, an analyst at securities firm Invested Bank, recently said in a customer announcement that UK consumers, who are protected by price caps, will raise energy prices by more than 50% if adjustments are announced early next year. I predicted that it might increase.
The electricity market has become even more vibrant over the past few days with the shutdown of three French nuclear power plants for troubleshooting.
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