as if Iwa Krukovska, William Mattis and Alex Morales On 9/22/2021
(Bloomberg) – The United Kingdom is considering all options to resolve the crisis, but people need to be prepared for higher prices in the long run, business secretary Kwasi Quarting told Parliament.
Meanwhile, rising energy and natural gas prices have led to the European Union’s abduction of the region from fossil fuels, a source close to the matter said.
After a long and bitter winter left storage, Europe was short of gas. This summer, it was not easy for Russia, the world’s largest supplier, to restrict the flow to the continent. Liquid natural gas is also heading to Asia.
Key developments
- Two key OPEC members say the effects of the gas crisis could penetrate the oil market.
- Many UK energy companies have stopped accepting new customers as they struggle to keep their promises to sell low-cost suppliers.
- European gas prices have more than tripled this year and peaked last week.
Quarting (11:43 am UK) weighing all options to fix UK crisis
UK business secretary Kwasi Quarting says the country is looking at all options to tackle the crisis that has pushed energy suppliers to the brink of collapse. Quarting said people should be prepared that this time may be different, even though those prices are falling steadily.
“We need to be prepared for higher prices in the long run,” he told the Commonwealth Trade, Energy and Industry Strategy Committee.
Quarting has previously said the UK has a variety of energy supplies, and described concerns about gas storage as “red herd”. He said the country’s electricity system could come from nuclear power by 2050, adding that Britain needed a smarter power system.
Gas crisis to push oil crisis, prices rise (11:14 am)
Two key members of OPEC say that the impact of the gas crisis could penetrate the oil market and increase demand and prices. In an interview with Bloomberg Television, Mele Kiyari, managing director of the Nigerian National Petroleum Corporation, said consumers would be forced to switch from gas to other fuels, which could increase by $ 10 in the next three months.
Iraq warns of high oil demand and is ready to pump more supplies if necessary. The new Minister of Petroleum, Ihsan Abdul Jabbar, said in Dubai, where the Guba tech is located for the gas and hydrogen industries. If there is an agreement in OPEC, we will be ready.
Energy Crisis Hijacks EU Green Talks (10:59 am UK)
The rise in energy and natural gas prices was interrupted by a debate on the European Green Agreement at a meeting of Slovenia’s energy ministers on Wednesday, a source familiar with the matter said.
The ministers raised the issue of price fluctuations and rising energy costs for public shifts. They were concerned about the social consequences of the EU’s proposal to extend the region’s carbon market to fossil fuels used in transport and construction.
UK Crisis Exposes Retail Vulnerability Energy UK (10:48 am London)
The energy crisis in the UK has exposed the country’s retail energy sector, said Emma Pinchbeck, CEO of Energy UK Business Association.
“There are features in our market design that make it very difficult for our retailers to adapt to the current situation,” he told parliament. The real concern is that the sector as a whole is very weak. Players who are expected to take customers are worried about doing so.
“We think good, well-managed companies will fail,” he added. That is the function of price fluctuations and market design.
UK Power Supplier Green Weight Options (9:41 am London)
British energy and gas retailer Green may decide to shut down in a matter of days, said Peter McGregor, the company’s general manager. The supplier is working with Alvarez and Marshall to explore options for the future, but said the company would be shut down if the government did not take action such as raising prices.
Quarting said the government would not guarantee small suppliers and that the United Kingdom would hold its own.