Coal prices are also rising amid the global energy crisis. Bloomberg reported that Germany’s Steag power plant ran out of coal. Europe wants Russia to supply it, but Russia must prepare coal that meets the standards for green energy, so supply will still take time in any case. Bank of America expects crude oil prices to be $ 100 a barrel and warns that this could trigger a financial crisis. High natural gas prices will boost demand for oil, especially diesel.
Relaxation of behavioral restrictions will also increase demand for crude oil for air travel. For crude oil and natural gas, it was reported that call options with high strike prices were traded. Following $200 for oil and $40 for natural gas, “coal” options are likely skyrocketing. Russia is limiting its natural gas supply to Europe. Still, it has begun supplying gas to Hungary and Croatia through the TurkStream pipeline. Nord Stream 2 is complete, but it’s still uncertain whether the pipeline will work. In Germany, the Greens, which oppose the Nord Stream 2 project, are expected to leap to 14.8% to form a coalition government. Gazprom said, “If Nord Stream 2 goes live, we can increase supply.” Russia’s bargaining power will continue to grow.（Energy Crisis Forces German Power Plant to Halt on Lack of Coal）（Bank of America: Energy Crunch Could Lead to 100 Oil and Economic Crisis）（Apart From Hungary, Gazprom Begins to Supply Gas Via TurkStream to Croatia）
The UK and the Netherlands have exceptionally high electricity prices. In the UK, electricity prices spiked 10% month-on-month in response to the surge in natural gas, and 10 electricity companies went bankrupt since August. In addition, gasoline is depleted at one-quarter of all gas stations. The Netherlands is the world’s second-largest food exporter. Still, soaring electricity prices have prevented greenhouse lighting and air conditioning from operating, only 50-80% of greenhouse occupancy rates. In addition, there is a shortage of drivers involved in transportation, and the entire supply chain has been hit. It is a global trend that food prices are also rising.
Moreover, since this activity spans multiple countries and currency areas, it is not a matter of intervention by any central bank. France has announced that it will introduce measures such as lowering taxes on electricity prices to protect consumers. Since 70% of France’s electricity demand comes from nuclear power, the impact of soaring natural gas is not as significant as in Britain. But in France, the “Yellow Vest” demonstration that began in 2018 has recently rekindled. President Macron, who is preparing for the presidential election in April next year, is forced to perform such measures to gain voters’ support.（26% of UK Filling Stations Are Dry, Petrol Retailers Association Says）（France Begins “Price Protection” Measures To Shield Consumers From Soaring Energy Prices）