Energy Crisis in Europe: Traders Prepare for the Worst

January 5 2022 6

In a situation of possible frosts and a lack of fuel in Europe, the energy crisis is aggravated. The West traditionally puts the blame for everything on Russia, which allegedly deliberately does not want to increase gas supplies to Europe. This, in particular, is the opinion of Bloomberg experts.

At the moment, the situation has seriously aggravated, but the "gas" problems of the Europeans have been forming for several years. Thus, the "green agenda" of the EU has led to a decrease in the extraction of fossil fuels, at the same time, the wind and the sun are not yet able to provide a stable supply of electricity.

Meanwhile, last cold winter depleted reserves in European UGS facilities (they are now only 56 percent full, 15 percent less than the 10-year average). Moscow, trying to take control of the European energy sector, is in no hurry to increase gas transportation to European markets and at the same time is preparing to launch Nord Stream 2. Japan and China have increased their imports of "blue fuel", which has further complicated the supply of gas to Europe.

The recent increase in US LNG supplies has briefly improved the situation, but it is still far from resolved. Compounding the problem of the continent's energy supply and the need for France to stop some nuclear reactors for routine maintenance, as well as the closure of nuclear power plants in Germany. As for gas reserves, experts expect them to drop to 15 percent by the end of March, which will be their lowest level in history.

Russia can further reduce gas supplies for foreign policy reasons. For example, a number of experts believe that it is possible for Russian troops to invade Ukraine in January-February this year, which should negatively affect the transportation of gas through the territory of Ukraine.

Traders are already preparing for the worst. Over the past month, prices for gas supplied from spring to 2023 have risen by about 40 percent

- writes Bloomberg.

According to a number of analysts, the energy crisis in Europe may last until 2023, when the continent's market can be filled with American LNG.

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zzdimk

+4

5 January 2022 13: 38

As long as there is a destructive green movement, nothing will save Europe.
1. Pandiurin
  
  +4
  
  5 January 2022 14: 01
  
  According to a number of analysts, the energy crisis in Europe could last until 2023
  
  There is a doubt that Europe will last a year with such gas and electricity prices.
  Germany would probably be able to pay its costs. But they will also have to pay for all the Balts, etc. The Germans call the restrictions due to the coronavirus the main factor negatively affecting the economy. As if, too, it does not seem that the problem will resolve in a year. The EU will finish off a lot of serious problems at once that cannot be solved over a long period.
passing by

+5

5 January 2022 14: 25

producers and households are preparing for the worst. and traders are getting ready to shovel loot from stock trading.
Scharnhorst

+2

5 January 2022 16: 51

Logically speaking, they knew about windmills and dams on streams in Europe 1000 years ago. At the end of the 80s of the last century, everyone was frightened by the depletion of reserves, first of natural gas, then of oil, and only coal there was no alternative for 300 years. Advanced countries began to develop nuclear power because of deep economic analysis, without looking back at the paid "green". The Balts have never been fans of progress - their lot is Belarusian chips. Germany and Japan are occupied countries - destroy nuclear power plants for the sake of and on the orders of the hegemon, woe to the vanquished. Sovereign countries should think with their own heads, not with Greta Tumberg's.
Alexander

0

6 January 2022 00: 05

The recent increase in American LNG - and you can talk about it in more detail ... something was not heard that at least one tanker delivered the molecules of freedom ...
1. tulip
  
  -1
  
  6 January 2022 11: 36
  
  one or two like all the same reached and even unloaded, the rest turned around and left for Asia)))
  The point is different - as one expert in the chemical industry told me - LNG from America is not suitable for German production - that is, it will go for heating, but the industry is geared towards Russian pipeline gas - there are some formulas there))) So even if LNG will come constantly, and there will be no gas from the pipes from Russia - then the economy of Europe is still a kerdyk)