The Europe energy crisis 2022 explained.
The energy crisis in Europe is getting very "ugly", warn from Bank of America.
The European energy crisis, triggered by a shortage of natural gas, is going from bad to worse, according to Bank of America. In a note published by the entity this Monday, they reaffirm what all countries are already beginning to assume: that Russia's speculation with gas will pose a problem with reserves in winter.
"The gas situation in Europe is going from a 'bad' scenario to an 'ugly' scenario in the last month," the bank said.
Europe energy crisis 2022
Russia is the largest individual energy supplier in Europe and accounts for 40% of the region's natural gas consumption.
Since he invaded Ukraine he is 'playing' with gas. In July, Russian state-owned energy giant Gazprom reduced flows to just 20% along the Nord Stream pipeline (linking Russia and Germany) a week after it cut off flows completely during a 10-day maintenance period.
Subsequently, it led countries such as Germany and France to find ways to plan for the rationing of gas supplies in order to accumulate inventory ahead of the colder months. Some cities in Germany, for example, have been turning off the spotlights of monuments and historical buildings to save energy.
"With the Nord Stream 1 gas pipeline flows at 20% of its capacity, winter storage accumulations could be insufficient and the EU is now planning a widespread rationing of demand. How did we get here?", are asked at Bank of America.
Europe energy crisis 2022 details
Tensions between Russia and Europe have affected the energy market in general, with natural gas futures prices near the 200 euros per megawatt-hour mark ($205.47 at current exchange rates), not far from the 300 euros it reached in March 2022.
"As pessimism about Russian supplies grows, spot and forward prices for European natural gas are stabilizing in a higher range," they report.
However, they add, "Russia's gas leverage is decreasing, so the country may decide to use it before it loses it. The key risks for TTF include the climate, a ceasefire and a reduction in subsidies to consumers."
As part of the energy crisis, Dutch TTF natural gas futures, the regional benchmark, are up almost 200% so far this year, compared to doubling prices in the UK and US. UU. in the same period.
Europe energy crisis 2022 summary
- Russia's continuous speculation with the supply of gas to Europe is provoking an energy crisis of unfathomable consequences.
- From Bank of America they assure that it has gone from a "bad" scenario to an "ugly" one.
