• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Canada Oil Faces Fresh Pipeline Shortage

Canada Oil Faces Fresh Pipeline Shortage

Canadian oil production could hit…

Europe Gas Prices Break Records On Winter Crunch Fears

Natural gas prices in Europe inched closer to 300 euro per megawatt-hour as fears deepened about a looming supply crunch during peak demand season.

Bloomberg reported today that benchmark gas futures on the continent hit $288.81 (291 euro) per MWh in morning trade, after closing yesterday at a record high.

The report cited Energy Aspects analyst Leon Izbicki as saying the European price for gas could hit 400 euro per MWh in the gas flow via Nord Stream 1 stop next month. For now, Gazprom has said it would suspend flows for three days beginning August 31 for repairs at the only remaining compressor on the route that is still functioning.

In Europe, there are fears that this might not be the end of it, and governments are preparing for a worst-case scenario with zero Russian gas in the winter at a time when some activists are calling on Europe to outright embargo Russian gas as it did with Russian oil.

Meanwhile, Europe is trying to stock up on as much LNG as it can in anticipation of what increasingly looks like the harshest winter in at least one generation.

Because of the record-breaking prices for gas on the spot market, where European buyers source their emergency supplies, energy prices across the EU and the UK are through the roof, aggravating a cost-of-living crisis that has had some politicians warn about social unrest during the winter.

The industry is also under threat because of factories’ higher energy bills, with Bloomberg writing earlier this month that a wave of factory closures might be on the way.

“Energy inflation is way more dramatic here than elsewhere,” one manufacturing industry executive told Bloomberg last week. “I fear a gradual de-industrialization of the German economy.”

ADVERTISEMENT

German Chancellor Olaf Scholz is currently on a visit to Canada to try and secure future LNG deliveries, although Canada appears to be reluctant to commit to those in light of its net-zero ambitions.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

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