The prices of natural gas and electricity have skyrocketed, and Europe is experiencing an energy crisis!

　　With the coming of winter, the supply of natural gas is in short supply and prices are soaring. The price of natural gas in the UK has risen by 7% to more than £1.65 per them, which is 3 times the price level of that at the beginning of the year, and it has risen by 70% since the beginning of August alone.

　　Natural gas is the key energy source for power generation, which has also led to the breakthrough of new highs in electricity prices. Electricity prices in the UK more than doubled in September, almost seven times the same period in 2020. Electricity prices in Germany and Spain also hit new highs.

　　Affected by the sluggish supply of natural gas in the United States, European natural gas futures prices exceeded US$880 per thousand cubic meters on Wednesday, setting a record high. ICE British natural gas futures once exceeded 194.94 pence/kcal, a record high at the same time. Previously, the IFA power station in Kent, southeast of the United Kingdom, was closed due to a fire. The power station is an important facility of the British power energy system, and France transmits electricity to the United Kingdom through the power station.

　　Market analysis believes that the current round of European energy crisis is affected by both ends of supply and demand.

　　On the demand side, the economy restarted after the epidemic, pushing up global demand for natural gas. At the same time, more environmentally friendly energy policies have resulted in less polluting natural gas becoming the first choice for replacing coal, which has naturally pushed up the use of natural gas.

　　On the supply side, last year’s particularly cold winter meant that Europe consumed more natural gas reserves than usual. However, this summer was due to various reasons, such as intermittent natural gas production in different parts of the world, and declining natural gas flow from Russia to Europe. The already tight market is even more tense.

　　As an important supply of natural gas in Europe, the natural gas producing areas in the United States are currently plagued by hurricanes. The US Security and Environmental Enforcement Agency said on Monday that after Hurricane Ida, it is estimated that 43.6% of oil production capacity and 51.6% of natural gas production capacity in the Gulf of Mexico are still closed.

　　Insufficient power generation from renewable energy sources such as wind power has also indirectly pushed up the price of natural gas in Europe.

　　RWE, Germany’s largest energy company, one of the three European energy giants, previously stated that wind speeds in northern and central Europe have slowed sharply this year, causing the company’s offshore wind power sector’s core profit to drop by 22% in the first half of the year. 459 million euros.

　　With the “out of control” of natural gas prices, electricity prices in European countries have also soared. UK electricity prices more than doubled in September, almost seven times the same period in 2020. According to statistics from the data provider ICIS, when the wind speed dropped last week, the price of electricity distributed in the UK the next day soared to 285 pounds per MWh, the highest value since 1999 on record.

　　German electricity futures, the European benchmark, have soared to 100.1 euros, setting a record.

　　In Spain, the country's electricity prices jumped to US$172.78 per MWh on Tuesday, a record high, with prices soaring by more than 200% since the beginning of the summer. Affected by electricity prices, Spanish households pay about 40% higher electricity bills than a year ago, causing huge political problems.

　　In order to reduce the cost of electricity for ordinary people, the Spanish Prime Minister announced on Monday that by the end of this year, Spain will cut 1.4 billion euros in electricity taxes, and withdraw 650 million euros from energy companies’ excess profits and redistribute them to consumers to ease the rise in electricity prices. Impact.

　　Many European countries are also following up. The French government has stated that it will consider expanding the number of people eligible for fuel subsidies, and Greece has announced the establishment of a 150-million-euro energy transition fund to compensate for the recent increase in electricity prices.

　　As the price of natural gas continues to rise, the market is currently worried that this cold winter in Europe will be "sad". If this winter encounters colder weather than normal, this will cause the price of natural gas to hit a record high. It is not known how long the "hyperinflation" of electricity in European countries will continue.

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