Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Soaring European Energy Prices Could Send The Commodity Boom Into Overdrive

By OilPrice.com (Tsvetana Paraskova)CommoditiesSep 14, 2021 12:47AM ET
www.investing.com/analysis/soaring-european-energy-prices-could-send-the-commodity-boom-into-overdrive-200601815
Soaring European Energy Prices Could Send The Commodity Boom Into Overdrive
By OilPrice.com (Tsvetana Paraskova)   |  Sep 14, 2021 12:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Record breaking natural gas and electricity prices in Europe could be the harbinger of increased volatility in global commodity markets, according to Goldman Sachs.

“European energy pricing dynamics offer a glimpse of what is in store for other commodity markets, with widening deficits and depleting inventories leading to elevated price volatility,” the investment bank’s analysts wrote in a new report carried by Bloomberg.

Depleted natural gas inventories and low wind speeds have led to a surge in electricity prices across Europe, putting pressure on governments as consumers protest against soaring power bills ahead of the winter heating season.

Electricity prices from the UK to Spain have jumped to all-time highs, people in Spain have taken to the streets, while prices across Europe so high could become a drag on the economic recovery from the pandemic.

According to Goldman Sachs, Europe’s natural gas and electricity prices could rise even further, considering that gas levels in inventories are at a ten-year low—and not filling fast enough—just ahead of the winter heating season that begins next month.

“[D]emand destruction is the only option to rebalance markets,” of natural gas in Europe, Goldman’s analysts said.

Should supply continue to be lower than usual and the winter turn out to be colder than usual, Europe’s gas and electricity prices could jump further from already record levels, Goldman Sachs notes.

Higher prices from here would “ration demand and thus curb energy-intensive industrial production,” the investment bank’s analysts wrote.

Power prices in the UK, Germany, France, and Spain—some of the largest economies in Europe—have set records over the past week.

The U.S. State Department’s envoy for energy security, Amos Hochstein, said during a visit to Poland last week that he was concerned with the low natural gas supplies in Europe ahead of the winter season, which could be colder than usual.

Original Post

Soaring European Energy Prices Could Send The Commodity Boom Into Overdrive
 

Related Articles

Satendra Singh
Natural Gas: Anxiety At High Pitch By Satendra Singh - Sep 27, 2021 7

Natural gas prices surged in response to increasing signs of a global energy shortage at the start of the northern hemisphere winter heating season. Futures started this week with...

Soaring European Energy Prices Could Send The Commodity Boom Into Overdrive

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email