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Prepare For A Prolonged Period Of High Energy Prices

The global energy crunch has been gaining momentum over this week with pricing fundamentals increasingly pointing towards a much more prolonged period of high gas and coal prices as electricity generation became a price concern across the Atlantic Basin and Asia. European gas futures have already moved beyond a crude oil equivalent of $200 per barrel, boosting gas-to-oil possibilities wherever they remain available. Coal, too, has received a massive boost as conducive gas-to-coal switching economics compel producers to produce more amid global supply tightness. The Friday trading session saw Brent futures trade around $82.5 per barrel, whilst WTI was nearing the $79 per barrel mark.

Oct 10, 2021 10:04
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