Reuters File Photo: A sign informs customers that a petrol station in Hemel Hempstead, UK, has run out of fuel, September 29, 2021.
(Reuters) – British petrol stations are dry in the European Union before winter, forcing electricity prices to rise, forcing China to use energy and forcing oil and coal prices to rise.
You may be forgiven for thinking that the world is suddenly suffering from a lack of energy, but you will mostly make mistakes.
While the intensity of crushing consumers and traders is intense, there are fewer barriers than you might think.
Their combined coronavirus revived energy demand from the bottom up in the depths of the crisis that pushed up oil, gas and coal prices, the ongoing supply restrictions of the oil cartel OPEC and the global transportation hurdle complicating fuel distribution.
But the list of those that set them apart is longer, reflecting the fact that disruptions to local policy choices and regional dynamics may be greater than global supply shortages.
Oil prices have fallen to ০ 100 a barrel this week for the first time in three years, and natural gas and coal have reached a multi-year high.
The Organization of Petroleum Exporting Countries and Allied Powers will decide at a meeting next week whether to release additional production capacity to reduce prices.
Here is a summary of what is disrupting the energy market:
Beijing has started supplying electricity to the energy-hungry business due to the coal supply crisis due to increased safety tests at China’s mines, which dragged down production many years before the first half of the year.
Lower coal production has led to a massive increase in local thermal coal prices, which have reached record highs this year and more than 80% year-on-year.
Because Beijing sets the price of electricity, coal-fired power plants are unable to operate economically with such high coal costs and are shutting down.
Goldman Sachs (NYSE:) estimates that activity activity in China has been affected by power shortages.
The China Electricity Council, which represents electricity suppliers, said Monday that coal-fired power companies are now “expanding their purchasing channels at any cost” to ensure winter heat and power supply.
But coal traders say it may be easier to find new sources of imports, as Russia is focused on meeting Europe’s electricity demand, rains are disrupting production from Indonesia and trucking barriers are hampering imports from Mongolia.
Europe’s electricity bill
The cost of lighting in Spain has tripled, with massive increases in electricity bills across the EU in recent weeks. Rising electricity prices have raised fears of a severe winter scare as households take heat demand and costs to a seasonal peak.
The reasons for the rising costs in Europe are a combination of local factors, ranging from low natural gas reserves and shipments abroad, to passive production and maintenance work in the region’s windmills and solar farms that have kept nuclear generators and other plants offline.
The timing is tough because demand is expected to rise next month, but the return of power plants from maintenance and the recently completed Nord Stream 2 gas pipeline from Russia to Germany could eventually ease the market.
Meanwhile, Spain, Italy, Greece, Britain and others are planning national measures, ranging from subsidies to price limits, to protect citizens from the rising cost of the Covid-1 pandemic epidemic.
Dry petrol stations in the UK
Fuel pumps in major cities have dried up as one of the worst fuels facing Britain in decades as a result of buying panic among motorists. Clashes erupted at the filling station as the government called for calm.
The problem, however, is not the lack of gasoline, but the lack of trawlers that it receives from refineries to retailers একটি a strange side effect of Britain’s exit from the EU and a hangover of certification and training of suspended truckers during epidemics.
Fix? Prime Minister Boris Johnson’s government is issuing temporary visas to thousands of foreign truck drivers to bring fuel to market, keeping the military ready to help, and hoping to restore order at the pumps before the holidays.