• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 3 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 6 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 2 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 3 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days Modest drop in oil price: SPRs vs US crude inventory build
  • 2 days 2019 - Attack on Saudi Oil Facilities.
  • 4 days Ukrainian Maidan after 8 years
  • 4 days Peak oil - demand vs production
  • 5 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days NordStream2
  • 6 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Oil Prices Collapse To $69 On New COVID Fears

Oil Prices Collapse To $69 On New COVID Fears

Oil prices have fallen by…

Oil Prices Crash On New Covid Fears

Oil Prices Crash On New Covid Fears

Oil prices crashed on Friday…

Will Rivian Become The Next Tesla?

Will Rivian Become The Next Tesla?

Rivian Automotive just went public,…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Soaring European Energy Prices Could Send The Commodity Boom Into Overdrive

Record breaking natural gas and electricity prices in Europe could be the harbinger of increased volatility in global commodity markets, according to Goldman Sachs.

“European energy pricing dynamics offer a glimpse of what is in store for other commodity markets, with widening deficits and depleting inventories leading to elevated price volatility,” the investment bank’s analysts wrote in a new report carried by Bloomberg.

Depleted natural gas inventories and low wind speeds have led to a surge in electricity prices across Europe, putting pressure on governments as consumers protest against soaring power bills ahead of the winter heating season. 

Electricity prices from the UK to Spain have jumped to all-time highs, people in Spain have taken to the streets, while prices across Europe so high could become a drag on the economic recovery from the pandemic.

According to Goldman Sachs, Europe’s natural gas and electricity prices could rise even further, considering that gas levels in inventories are at a ten-year low—and not filling fast enough—just ahead of the winter heating season that begins next month.

“[D]emand destruction is the only option to rebalance markets,” of natural gas in Europe, Goldman’s analysts said.

Should supply continue to be lower than usual and the winter turn out to be colder than usual, Europe’s gas and electricity prices could jump further from already record levels, Goldman Sachs notes.

Related: 3 Bearish Catalysts For Oil This Fall

Higher prices from here would “ration demand and thus curb energy-intensive industrial production,” the investment bank’s analysts wrote.

Power prices in the UK, Germany, France, and Spain—some of the largest economies in Europe—have set records over the past week.

The U.S. State Department’s envoy for energy security, Amos Hochstein, said during a visit to Poland last week that he was concerned with the low natural gas supplies in Europe ahead of the winter season, which could be colder than usual.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on September 13 2021 said:
    And the main beneficiary is Russia and its completed Nord Stream 2.

    Prices could rocket with a harsh winter particularly if Russia decides not to increase its gas supplies to the EU beyond of what is already contracted.

    Therefore, Europe’s dependence on Russian piped gas supplies will continue to rise. The EU needs Russia more than Russia needs them.

    Moreover, Nord Stream 2 could prove the EU’s saviour bringing an additional 50 billion cubic metres. It is a viable economic project exactly as Russia has been telling the Europeans since the start of the project 12 years ago.in this very day is a godsend to Europe.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • George Doolittle on September 13 2021 said:
    Long $tsla Tesla Motors
    Strong buy

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News