• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours What-If - Russia decided to take out the Saudi and Kuwait oilfields
  • 11 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days "As the Earth Cools, the Climate Change Hoax Heats Up" by Michelle Edwards
  • 9 hours PROFOUND ! "Russian Ruble relaunched linked to Gold and Commodities" by the famous Ronan Manly -- (NOTE the censorship by the MultiPolar New World Order of The Great Reset))
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 4 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"

UBS: UK Gas Crisis Set To Plunge British Pound To Historic Lows

The British pound is expected to plunge to a historically low level versus the U.S. dollar in the fourth quarter of this year, when the energy and gas crisis in the UK will worsen, according to strategists at the private banking unit of UBS Group.

"We expect GBP/USD to come under pressure this year," Thomas Flury, head of currency research at UBS Wealth Management, and Dean Turner, UK economist at UBS Private Banking, wrote in a note carried by Bloomberg.

"The euro zone and the UK are both likely to suffer energy supply shortages this winter," the strategists said.

UBS has reduced its outlook for the British pound to $1.15 in the fourth quarter of 2022, down from a previous estimate of $1.26 per pound sterling.

If UBS's target turns out right about its $1.15 call, the GBP will have slumped to the levels seen in the early days of the pandemic and the second-lowest level ever, after the low from 1985, according to Bloomberg's estimates.

Most analysts expect a relatively stable pound at around $1.22 through the end of the year, but UBS believes that the Bank of England's interest rate hikes will not support the UK currency for long with the looming crisis in the winter when UK energy bills will surge again.

Energy bills in the UK are set to surge more than expected this winter, with many households struggling to be able to pay them after Russia further slashed gas deliveries to Europe, sending gas and energy prices for the winter and for next year soaring, UK-based consultancy BFY Group said last week.

"Huge swathes of the British public aren't going to be able to afford their bills this winter. Average families with two working parents will be in fuel poverty," Gemma Berwick, Senior Consultant at BFY Group said, as carried by The Telegraph.  

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • John Anonymo on August 03 2022 said:
    Anything you tax you get less of it. Half the price of UK petrol is tax. In addition UK passed a new excess profits tax on oil production in perpetuity. North Sea oil drilling came to a screeching halt. UK deserves its socialist poverty. First thing after defeating the German National Socialists in WWII the British threw out Churchill and voted in socialists.

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