Experts are’extremely, very concerned’ about the UK gas price situation, which is depicted in a terrifying chart.
GAS prices in the UK are expected to climb as a result of a severe warning from Bloomberg’s Chief Energy Correspondent, who advised the British government to be very concerned.
Javier Blas came to Twitter to express the alarming situation in a Tweet with petrol price rises on show. The correspondent indicated that a price barrier had been crossed by drawing on his experience in the energy business.
“If I were the British Government, I would be very, very concerned about this chart,” Mr Blas wrote. Natural gas in the United Kingdom has now surpassed the $40 per million Btu threshold (300 pence per therm). It is now trading above $230 per barrel of oil equivalent in oil terms.”
“And a reminder that amid a supply constraint, natural gas prices go parabolic, reaching whatever price is needed to curb demand,” the expert added. Last winter, the price in Oklamhoma was $999 per million Btu. As a result, some would argue that current UK prices are actually low.” Mr Blas also delivered a strong warning to the EU, taking the situation even further afield.
“I usually said the UK government because I live in London.” However, Brussels (and all other European capitals) should be concerned as well. Gas prices are the same across Europe, causing major inflationary shocks to the economies. “Industrial output will be reduced.” Natural gas contracts for delivery in Europe increased by 23% in November to 117.50 euros per megawatt hour, up from 18 euros just six months before.
According to Mr Blas’ findings, costs in the United Kingdom have also risen.
Prices have tripled in the last three months, reaching £3 per therm for the first time.
The high energy prices are due to a rapid increase in demand after the lockdowns were lifted, as well as initiatives by governments across Europe to reduce coal consumption.
Many European countries, including Spain, Italy, France, and Greece, have already agreed to provide subsidies to shield people from rising expenses.
Ursula von der Leyen, the President of the European Commission, praised Norway’s involvement in the production of excess gas while speaking about the situation across the EU.
“We are grateful that Norway is stepping forward, but it does not appear that Russia is doing so.”
Russia, as Europe’s major natural gas supplier, has tightened the screws. “Brinkwire News Summary.”