LONDON – As the world struggles to cope with the epidemic, rising natural gas prices are threatening the economy in Europe and elsewhere. Oil prices have reached record highs over the years – about five times as many as in 2019 before people became infected.
High costs are fed up with electricity prices, and private finances are beginning to appear in consumer bills weighing on affected consumers. It is not uncommon for prices to plummet during the winter, raising alarms for further opportunities.
As wholesale prices have doubled, Spanish households are paying an estimated 40 percent of what they paid for electricity a year ago, sparking outrage among utility companies.
“The rise in electricity prices has caused a great deal of outrage, and this is really going to be on the streets,” said Maria Cam Puzzano, a spokeswoman for the Electric Energy Association.
The disease is being spread across Europe, with gas being used for home heating and cooking as well as electricity. Citing natural gas prices, the British Energy Regulatory Agency, OFM, recently offered green light to increase energy bills for millions of households, who pay around 12 per cent, 1, 1,277 or $ 1,763 a year to 1, 1,277 or $ 1,763.
Inflation has been blamed for a number of trends, including a resurgence in global demand following the Chinese-led epidemic and a European trend that weakened storage levels later this summer. The expected high and congested supply from Milan is a “perfect hurricane,” said Marco Alvara, CEO of Milan’s largest gas company.
The concern is that prices could rise higher than in Europe, with some factories closing temporarily.
“If it’s cold, we’re in trouble,” said Mr. Alvara.
The jump has called for some to switch from fossil fuels to wind and solar energy sources to consumers at the mercy of global commodity markets.
“The reality is that we need to change quickly,” said Greg Jackson, chief executive of British utility Octopus Energy.
On the other hand, if power companies start to produce fossil fuels, the turmoil in prices could also lead to volatility, analysts said. In addition, the closure of coal mines in Britain and other countries has reduced the flexibility of the system, Mr Alver said.
Trade and Economy
Gas prices in the United States have also risen, but only about a quarter in Europe. The United States has great value for Europe because in terms of relatively cheap gas drilling and other activities, Europe has to import most of its gas.
In Europe, emergencies are a common concern for marketers, who use the summer months to fill up on cheap gas storage facilities during the winter, when cold weather doubles gas consumption in countries such as Britain. And Germany.
Instead, suppliers responded to the cold weather late last summer by pouring gas storage facilities. Next, they refused to refuel at a high price. As a result, European storage facilities are at a depleted level during the winter rather than at the peak of the fall.
“As we enter the winter, the market is in turmoil,” says Laura Page, a researcher at Kepler, a research firm. We have very low storage levels for the year.
Europe imports 60 percent of its gas, with supplies coming from Russia and, to a lesser extent, Algeria and Libya.
Liquid natural gas, by ship from the United States, Qatar, and elsewhere, often helps to balance the market. This year, however, LNG carriers in China, South Korea, and Brazil have been hit by high prices due to the drought.
As a result, Italy, Spain and northwestern Europe saw a sharp decline in liquid natural gas, according to market research firm Woodney McKenzie.
Groningen, which has long served as a safety valve for her homeland and West Germany in the Netherlands, is slowly closing due to earthquakes. Last year, European gas prices rose from $ 4 to $ 18 per million British gallons.
Russia and Algeria, Europe’s largest gas suppliers, have increased exports significantly, but not enough to reduce market risks. Are some analysts saying that Russian gas company Gazprom is pursuing a costly strategy or is it trying to allow the West to complete the North Stream 2 pipeline project from Russia to Germany?
“It looks like he’s playing a game here,” says Graham Friedman, a woodworking analyst at McKenzie. Mr Friedman, on the other hand, said Gazprom may not have more gas to export.
A spokesman for Gazprom said: “Our mission is to meet the obligations of our customers, not to ‘reduce risks’. He added that Gazprom has increased supply to record levels this year.
The construction of the 746-mile pipeline under the Baltic Sea was to be completed off the coast of Germany last year following a US sanctions threat. However, in an agreement with Germany in July, the Biden administration agreed to drop the threat. He told the project management company that he plans to build the pipeline on Monday this year.
Stanley Reid from London, and Rafael Minder from Madrid.