As China cracks down on the manufacturing companies for not meeting energy consumption goals, Europe might soon follow, but for a different reason. It’s no secret the European energy markets have jumped to new record highs, but with winter approaching and little energy sources stockpiled, European countries may soon see a runaway energy market as demand outstretches supply.
Many of the UK’s energy suppliers have either collapsed or are struggling to provide supply to their clients. Gas, oil, and coal prices have all surged to their highest in recent years. It seems like Europe’s ambitious climate plan is soon to meet a monumental challenge as countries struggle to secure enough energy for their consumers. In a letter on September 20, Spain has warned the EU that “measures to reduce emissions may not stand a sustained period of abusive electricity prices.”
As of now, gas is now the hottest commodity with a key gas auction in Ukraine on October 1st capturing the attention of many. The current gas shortage is already crippling energy suppliers, but it looks like gas prices will only spike further ahead as the winter season approaches.