There is no immediate fix to the energy crisis that comes from the supply side, with Russia's Gazprom, the largest supplier of natural gas to Europe, only pumping what it has. At the same time, EU stockpiles remain well below trend.
"Given the current energy supply system, a blackout cannot be ruled out" across Europe, Minister Giancarlo Giorgetti said, adding that "it's important to neutralize the impact of increased energy bills on households and companies in the fairest way possible."
Even before the winter season arrives, cold weather is driving energy prices across Europe to record highs. The massive rally in European gas prices is not diminishing anytime soon. Gas prices at the Dutch TTF hub, the benchmark gas price for Europe, jumped to €100 per MWh, adding more pressure on households who are already dealing with rapid food and shelter inflation.
Other energy analysts have warned of power grid woes. Jeremy Weir, chief executive officer of Trafigura Group, a Swiss commodity trading house, said rolling blackouts are possible across the EU. " ZeroHedge
"A report written by Christyan Malek, J.P. Morgan’s head of oil and gas research, said the price of oil could go up to $125 next year. The J.P. Morgan analysis was published on Nov. 29 and is predicting
At that price point, gas at the pump would likely cost about $5. It is currently about $3.5 dollars on average across the nation.
For reference, a barrel of crude
currently costs somewhere around $70, so the $125 figure would be a
near-doubling of the cost of crude. And that’s just in the short term.
According to the same report, a barrel of crude might approach $190 by 2025. In April 2020, the cost of Brent crude was $14.98 a barrel.......Unfortunately, JP Morgan is saying that gas might soon cost $10 a
gallon." Trending
