The UK is considering all options to address the energy crisis, but people should prepare for longer-term high prices, Business Secretary Kwasi Kwarteng told a committee of Parliament.
Meanwhile, the spike in power and natural gas prices hijacked European Union talks about the region’s transition away from fossil fuels, according to a person familiar with the matter.
Europe is facing a gas shortage after a long and bitter winter left storage sites depleted. Refilling them this summer hasn’t been easy, with top supplier Russia curbing flows to the continent. Liquefied natural gas is also heading to Asia.
The UK Weighing All Options to Fix Crisis: Kwarteng:
UK Business Secretary Kwasi Kwarteng said the country is looking at all options to address a crisis that has pushed energy suppliers to the brink of collapse amid a surge in gas prices. While those prices would normally decline, Kwarteng said people need to prepare that this time could be different.
“We have to prepare for long-term higher prices,” he said in remarks to the House of Commons Business, Energy and Industrial Strategy Committee.
Gas Crisis to Push Oil Demand, Prices Higher:
The impact of the gas crisis is likely to seep into the oil market, driving demand and prices higher, two of OPEC’s key members said. Crude could rise by $10 a barrel over the next three-to-six months as consumers are forced to shift from gas to other fuels, Mele Kyari, managing director of Nigerian National Petroleum Corp., said in an interview with Bloomberg Television.
Iraq warned on higher oil demand and stands ready to pump cruder if the increase in consumption warrants it. “There is some new concern,” Oil Minister Ihsan Abdul Jabbar said in Dubai, where he’s attending Gastech, a conference for the gas and hydrogen industries. “If there is agreement within OPEC, we will be ready.”
The International Energy Agency has called on Russia to supply more natural gas to Europe to help alleviate soaring energy prices.
The Paris-based group said in a statement that while Russia is fulfilling its long-term contracts to European customers, exports are down from their 2019 level. Russia is the European Union’s largest supplier of natural gas.
Established in 1974 by the world’s richest economies in response to an oil embargo by major producers, the IEA monitors global supplies and the transition to sustainable energy sources.
Gas prices have risen sharply across Europe as a result of depleted stocks, a strong recovery in demand, in particular from Asia, and low supplies from Russia. Other factors include a particularly cold and long heating season in Europe last winter, and lower wind energy in recent weeks, according to the IEA. Electricity prices are also soaring.
In a statement to CNN Business, Gazprom (GZPFY), Russia’s state-backed exporter of pipeline gas, said that the company has increased gas exports this year to a level “close to the historically recorded high,” which was reached in 2018.
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