Part 8/15:
Energy prices are a critical variable influencing inflation. Natural gas shortages in Europe, driven by supply disruptions, have sharply increased prices—European gas prices at one point reaching 14 times US prices. The US has been able to redirect LNG exports to Europe, but infrastructure limitations restrict the ability to fully alleviate price spikes.
The analyst emphasized the importance of energy scarcity in shaping global economic outcomes over the coming decade. Countries with constrained energy supplies face slower growth and social unrest, potentially leading to political regime shifts. European nations, especially Germany’s reliance on nuclear and gas, are particularly vulnerable.