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    Gas price hits fresh high as supply crunch worsens in UK and Europe

    Europe’s growing supply crisis sent natural gas prices to record highs on Tuesday, adding questions about fuel security this winter.

    November’s gas supply in Europe increased by 23% from just € 15 six months ago to € 117 per megawatt hour. Recent soaring prices mean that natural gas is currently trading at prices equivalent to more than $ 200 a barrel of oil. The UK’s gasoline price soared the day before, jumping to £ 2.52 per therm.

    UK gas prices delivered in November also soared, surpassing £ 3 for the first time and tripled in the last two months.

    Demand is skyrocketing as the economy recovers from the coronavirus pandemic when Europe’s gas reserves are lower than normal and heading towards winter, a period of normal peak demand.

    Russia, the continent’s largest source of natural gas, has limited supplements, but domestic production in Europe has declined significantly this year.

    China is facing its own energy crisis this summer as a large amount of liquefied natural gas is diverted from the United Kingdom and the European continent due to rising demand in Asia.

    Beijing becomes an energy company Snap up the coal and LNG you need Almost regardless of cost.

    Traders and analysts warn that European markets can remain tight during the winter, even if the weather is a bit colder than usual.

    Record natural gas prices are already causing problems for energy-intensive companies. Fertilizer producer — Natural gas is the main raw material — plant formwork or output limits.

    “Given the current output gap, I don’t think we’ll find a permanent solution soon,” said Elena Anankina, credit analyst at S & P Global Ratings. “Some contribution pressures may gradually ease, while others represent structural changes. We believe this is due to Europe’s dependence on imports and the world. Includes increased exposure to the gas market. “

    European gas shortages have also prompted the collapse of 10 UK retail energy providers since early August, requiring millions of customers to move to other companies.

    UK consumers are somewhat protected by government price caps on household electricity and natural gas prices, but regular transactions are now much more expensive.

    The cost of supplying gas and electricity to the average UK household for a year has skyrocketed to over £ 1,800, well above the £ 1,277 price limit.

    Soaring gas prices on Tuesday were also affected by the oil market. Some energy-intensive companies are considering switching from gas fuels to liquid fuels when possible.

    Opec and its allies resisted the call to increase oil production, but pushed US oil prices to their highest levels in seven years. US natural gas futures rose 5%, hitting a seven-year high.

    Amin Nasser, head of Saudi Arabia’s state-owned oil company Saudi Aramco, said on Monday that the switch from gas to oil will generate 500,000 barrels per day worldwide, or about 0.5 percent of pre-pandemic demand. He said he believed he had already boosted demand.

    Gas price hits fresh high as supply crunch worsens in UK and Europe Source link Gas price hits fresh high as supply crunch worsens in UK and Europe

    The post Gas price hits fresh high as supply crunch worsens in UK and Europe appeared first on California News Times.

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