Posted on 08/24/2022 6:06:03 AM PDT by Oldeconomybuyer
LONDON, Aug 24 (Reuters) - Another dramatic spike in natural gas prices appears to have ended any hopes that Europe's inflation battle is set to ease, with financial markets now bracing for higher prices, a faster pace of interest rate hikes and a deeper economic downturn.
Just a few weeks ago, signs that inflation in the United States - which tends to lead world economic shifts - might be peaking boosted stocks and lowered government borrowing costs. Investors bet central banks would now pay more attention to slowing economies, with a peak in the rate-hiking cycle nearing.
Instead, this week began with a forecast from U.S. bank Citi that UK inflation would rocket to a near half-century high of 18.6% by January, a prediction that dominated British newspaper front pages on Tuesday.
That landed as another explosive rise in natural gas prices showed little sign of slowing, with Russia signalling further squeezes on exports and European buyers scrambling for supplies before winter.
Gas prices have surged almost 40% in August and nearly 300% this year.
"The key is energy, energy, energy. There is an energy crisis, let's be honest about that, electricity prices are 10 times pre-COVID levels, that is a shock to the system," said Thomas Costerg, senior economist at Pictet Wealth Management.
"The U.S. and Europe are on different paths. We all knew that the Achilles' heel of Europe is foreign energy and now they are paying the price for that," he said, referring to European reliance on Russian gas.
(Excerpt) Read more at nasdaq.com ...
Trump warned them, and the Euroweenies laughed, as did our libtards. Every Western European government needs to be replaced.
OUCH!
And Putin is laughing all the way to the bank.
The absurdity of sanctions: India is buying heavily discounted Russian oil. It is refining it into gasoline, heating oil and jet fuel. It is selling these finished products at a premium to EU buyers.
Just give up the Green Death Spiral
My electric bill is up 50% for similar usage compared to a few months ago.
...and continued the failing fantasy and the green grift anyway.
But now that -- with the sweep of a re-definition -- coal and nuclear are newly defined as "green," -- perhaps Europe has a chance. Not much of one, but a chance.
This has a major effect on the price of natural gas on the east coast of the US. If as a gas provider you have the ability to liquefy it and ship it to Europe it is worth 5x as much as it is in Boston, Baltimore, Philly, NYC, etc.
Also, much of the electricity production has shifted to natural gas on the east coast in the last ten years. This is because companies like Eversource(the largest New England electric utility) could produce electricity from natural gas cheaper than the nuclear plant at Seabrook. So, two months ago Eversource doubled the rate here in NH.
Qatar is the biggest exporter of natural gas in the world.
They are going to have a very good year.
The weird thing is Germany has a 10 year supply of frackable natural gas beneath their feet but they won’t frack as they cling to their 100% renewables fantasy. Eventually when the green virtue signaling populus shows up en masse across the town squares to protest their gas bills, politicians will relent as will the populus,
The weird thing is Germany has a 10 year supply of frackable natural gas beneath their feet but they won’t frack as they cling to their 100% renewables fantasy. Eventually when the green virtue signaling populus shows up en masse across the town squares to protest their gas bills, politicians will relent as will the populus,
“ Gas prices have surged almost 40% in August and nearly 300% this year.
OUCH!
And Putin is laughing all the way to the bank. ”
They are not paying Putin those prices. Russian deliveries are under pre-existing contracts. Europeans are paying new suppliers those spot prices, as they buy lower volumes from Russia.
Take THAT, Putin!!
As the guys at The Duran are pointing out, this is happening.
The Germans are making up phony charges to replace the incompetent chancellor Oaf Doltz as we speak.
I think you will not be disappointed. Those seemingly compliant "useless eaters" will not be in a mood to be cold and hungry. And have their livelihoods ripped from them. It is only a matter of time.
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