Now, natural gas in Europe needs to be added in the list of the “way too expensive” things along with succulents & space travel. The country is currently facing a big crisis of gas as the prices rose 280% in 2021 compounding the crunches of supply in areas such as shipping, home energy and food.
- 2 fertilizer plants that used to supply 60% of carbon dioxide for the production of food& beverage were closed forcefully. According to experts, European customers will be hit with food shortages within weeks.
- Some of the steel producers in the United Kingdom had to stop their production procedure for the outrageous costs of energy resources.
What is happening?
Currently, the places which require gas is not getting a sufficient amount of gas. Currently, the crunch due to the shortage of energy resources in many factories and the demand for energy all over the world is being contributed by Russia.
The high prices of natural gas are not just the problem of Europe alone. This year the prices have increased more than hundred per cent in the United States as well and if the winter is any colder then everyone is going to face extremely high heating bills- especially the people living in California and New England.
Rise in the prices of natural gas
The future of natural gas for October has jumped about 5.3 % on Monday to nearly 5.20 dollars per million British thermal units. Natural gas has increased by 106 per cent and it is at its highest in over 7 years. However, the equivalent gas in the Asian & European markets is more than 20$ / mmBtus.
According to Blanch, “The U.S. is supposed to be an island, but in the last three or four years there’s an increasing link between the U.S. and global market,” he also added, “We’ve gone from 50% correlation to 95% correlation. The U.S. market is being dragged around by this.”