European Gas Posts Longest Declining Streak in More Than a Year. © Reuters
Bloomberg: Don’t Mistake the Gas Meltdown for End to Europe’s Energy Crisis
(Bloomberg) -- Don’t let the recent meltdown in European natural gas prices fool you.
The energy crunch of 2021 will last for years. That’s what futures traders are betting on, with spot prices dropping a lot more than forward contracts over the past week.
The scale of the moves signal the flotilla of liquefied natural gas cargoes heading to Europe will only provide short-term relief, and prices will still be expensive all the way to March 2023.
Europe is facing an energy crisis, with Russia curbing supplies and nuclear outages in France straining power grids in the coldest months of the year.
While more cargoes are landing in Europe for now, the fate of the market is still hanging on the approval of the controversial Nord Stream 2 pipeline, which President Vladimir Putin says could help cool this year’s 400% rally.
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Update: High Energy Prices To Persist In Europe Despite Arrival Of U.S. Gas (OilPrice.com/Zero Hedge)
WNU Editor: This is not going to help alleviate Europe's energy crisis .... Germany powering down three nuclear plants in shift to renewables (The Hill).
Germany powering down three nuclear plants in shift to renewables (The Hill)
ReplyDeleteSo the Greens, the Eurocrats, etc are getting their way. They are shutting down coal plants and nuclear plants. They are building windmills. The eschew fracking and buy gas from Russia. Merkel ignored Trump.
They have gotten their way nearly 100% and strange they are nearly 100% in trouble.
Merkel's enduring legacy is doing the bidding of Putin in Europe. On energy she was presented with a comprehensive energy plan by President Trump with US LNG supplied to Europe via long term contracts. Merkel and her team heaped contempt on the plan saying they won't pay extra for US gas when Russian gas was more plentiful and cheaper.
ReplyDeleteSo now they do get American gas from the spot market at vastly inflated prices while Russia withholds gas using it as a political weapon.