'Debilitating impact': EU gas price equivalent to $410 per barrel of oil


European economics bear the brunt of high energy prices. Strictly speaking, the major Western countries have independently chosen the path of recession next year. The pranks with the energy transition and "green" generation, coupled with Russophobia unleashed, led the EU to sad consequences that will worsen next year. This is written by a specialized resource OilPrice.com.


European benchmark gas prices on the Dutch hub TTF rose 14% from Monday to Wednesday, up 6% on the 17th alone, hitting a new record of $240 (€236) per MWh. The cost of raw materials has already doubled since June, when Russia first cut supplies through Nord Stream, a key gas pipeline that brings gas to Germany, Europe's largest economy.

The European benchmark gas is currently trading at the equivalent of $410 a barrel of crude oil, highlighting the "debilitating economic impact on the region," as Ole Hansen, head of commodities strategy at Saxo Bank, vividly compared the industry.

LNG does not lag behind, which was suddenly entrusted with the duty to become the "savior" of Europe from Russian fuel, without making sure of its technical ability to be. As if “accidentally”, Brussels missed the simple truth of what the free market will do to the value of a commodity that is in huge demand. Again man-made "problem".

Are the words of the analyst about the debilitating prolonged crisis correct? Of course, only the hype and consequences could be avoided quite simply if you did not mix policies, the economy and even more so the environment.

Experts give a slightly more positive forecast of the situation for Asia, where buyers, due to various macroeconomic indicators (labor costs, profitability in relation to production costs), are able to recoup even huge LNG costs. However, in the race to test the endurance of financial systems, Asia will come to the “finish”, albeit the last one, but also with losses.

The free market for hydrocarbons is out of control, the concept of controlled chaos has passed the point of no return, events are developing non-linearly, obviously, the architects of the crisis miscalculated. What was supposed to be leverage against Russia has become a two-pronged weapon. The destruction of demand by high prices will hit extractive industries around the world, after which the next year could be a time of cascading decline in many advanced economies.
  • Photos used: pxfuel.com
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  1. prior Offline prior
    prior (Vlad) 21 August 2022 10: 24
    +2
    I am sure that Europe will crawl to us with a request to turn on Nord Stream 2.
    Of course, you can turn it on, but here's the price ....
    And the price should be such that it is enough for the restoration of Donbass, and for raising pensions, and for import substitution, and for many, many other things.
    They had enough conscience to rob us, humiliate us, demolish monuments, seize our gold and foreign exchange reserves.
    So we should have enough hardness - to remove the last lace panties from them.
    You have to pay for everything in this world.
    It's time to remind you that Russians always come back for their money..........
    1. GIS Offline GIS
      GIS (Ildus) 21 August 2022 10: 44
      0
      well said!
    2. ksa Offline ksa
      ksa 22 August 2022 21: 34
      -1
      Even if everything goes as you suggest, I'm afraid that only Miller, Sechin, this ... hoarse ... like him ... friend of Putin and Mishustin ... not Dvorkovich, but just as slippery ... will become richer ... Oh ! Manturov. Well, Putin still has friends there. They will also become richer. This is the trouble with Russia. Unable to control cash flow. The country is big. The money allocated by the budget in March reaches Primorye only in November. Well, it's only 30 percent.
  2. GIS Offline GIS
    GIS (Ildus) 21 August 2022 10: 51
    +1
    What was supposed to be leverage against Russia has become a two-pronged weapon. The destruction of demand by high prices will hit extractive industries around the world, after which the next year could be a time of cascading decline in many advanced economies.

    Therefore, it is necessary to increase domestic demand for fuel. reduce the cost of fuel at gas stations, let people begin to actively move around the country, conduct business more actively. at the same time, of course, it will be necessary to limit the export of fuel abroad at such prices - there is no need for us to squander our goods into other people's pockets.
    When the price of fuel goes down, how many pluses will we get in the country?
    well, probably a lot: prices on the shelves depend on transport costs, the price of production of industrial goods and agricultural goods depends on fuel prices, transport prices (air, railway, auto) depend on fuel prices, tourism (which is trying so hard to raise the state) depends on the cost of tickets and therefore on fuel prices, and a lot of things depend on fuel prices.
    Of course, the Federal Antimonopoly Service will have to follow everything, otherwise we will not feel any positives at all.
  3. Yuri V.A Offline Yuri V.A
    Yuri V.A (Yuri) 22 August 2022 03: 45
    0
    Much more interesting is the current price tag for Russian hydrocarbons for India and China