Dash ignites oil switch for gas, pushes more suppliers by Reuters


Reuters file photo: Gas pipe found next to an unused gas holder in Manchester, UK, September 2, 2021. Reuters / Phil Nobel


Written by Noah Browning and Susanna Tweedel

LONDON (Reuters) – Gas soaring oil changes and more power suppliers in Britain are forecast to be out of business, while industry groups on Thursday called for government action to ensure supply is not disrupted this winter.

Natural gas prices have risen this year, especially in Europe, due to lower-than-normal stocks, declining supplies from Russia, the onset of cold temperatures and infrastructure disruptions.

Rising uncertainty prompted some analysts to predict a rise in global crude demand by several million barrels (bpd) per day, reducing already strong supplies as countries turn to oil for power generation in the winter.

Record high energy prices in Britain and Spain have already led some industrial companies, such as steel makers and fertilizer manufacturers, to cut production and even warn of food shortages this winter.

Pressure has also been felt in China, where authorities have restricted electricity use.

“This has never happened before on a global scale. The market has always tried to replace expensive oil with much lower prices,” said Bizern Shieldrop, chief product analyst at SEB.

A month before the start of the international climate talks in Glasgow, the oil reversal highlighted the difficulty of reducing emissions and converting to green sources of energy.

Meanwhile, Britain On the national grid (Lawn 🙂 warns Faced with growing demand and power constraints this winter, a top official said he was confident it would keep the lights on.

Any action to reduce prices would be too late for the 12 fuel suppliers that have already collapsed this year, with higher gas prices in Britain pushing up the price of wholesale electricity as gas accounts for about 40% of the country’s electricity generation.

More British power suppliers are likely to emerge from the market crash, regulator Ofzem said -Price-2021-10-07 / #: ~: text = nine% 20 fold% 20 in% 20 September% 2 C% 20as,% 20 20% energy 20 uk% 20 conference said Thursday.

‘Extensive support’

The rise in gas prices has been a boon for some companies, such as Royal Dutch Shell (LON :), which has increased cash flow from rising gas and electricity prices.

Shale is the top seller of liquefied natural gas (LNG), which accounts for about 20% of global demand, although sales have declined in recent months due to production problems.

The company’s British power retail business has benefited from After-rivals-default-2021-09-27 among smaller competitors, Recently collected 255,000 new subscribers following a competitor’s default.

The UK’s Energy Intensive Users Group (EIUG), which represents steel, chemical, fertilizer, paper, glass and cement manufacturers, has called on the government to take urgent action to ensure that power supply is not disrupted. Affordable price.

The price of forward electricity in Britain is set to be higher than last winter as gas prices reach record highs.

EIUG said on Thursday, “The problem is not just whether gas and electricity supplies will be available, but also the price one. Prices can be easily determined from the energy-intensive industrial market.”

The UK’s Business, Energy and Industrial Strategy (BEIS) said it was “determined to ensure a competitive future” for the energy-intensive industry and had provided “extensive support” to them in recent years.

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