January 15, 2021 Read More →

World may be at end of stable gas prices

Financial Times ($):

When restaurants in Japan open their windows to help combat the spread of Covid-19, you might not think it would have much effect 6,000 miles away in lockdown Britain.

But the shivering diners of Tokyo and Kyoto, where restaurants are still allowed to admit customers for limited hours, are not just an illustration of the differing emphases put by governments on the dangers of the aerosol spread of the virus.

They also tell a story of interconnected energy markets and increasingly how what happens in Asia can have a large knock-on effect for the UK and Europe — from what consumers pay to heat their homes to the ability of national grid systems to comfortably keep the lights on.

As a brutal cold snap has hit Japan and much of north-east Asia in recent weeks, Japanese utilities have had to scramble to source fuel supplies.

Bruce Robertson at the Institute for Energy Economics and Financial Analysis said that the world “may be coming to the end of an era of stable gas prices”.

[David Sheppard]

More: LNG rally heralds more volatile gas prices to come

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