News. October 6, 2021. The European Energy Crisis

in LeoFinance2 months ago

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The price of energy in Europe has increased dramatically in the past few months. According to this article, electricity has reached 200 euros per MWh. The price of liquefied natural gas (LNG) has reached the energy equivalent to almost 200 US dollars per oil barrel. Natural gal has multiplied by a factor of 3 during 2021. In addition to this, the price of CO2 emission rights (a hidden tax) has increased more than 10 times since 2017, and more than 3 times in 2021.

What explains this? First, the closures in different aspects of the economy caused by COVID-19 lockdowns has damaged the supply chains and the prohibition in investment in natural gas and nuclear energy have caused energy scarcity in moments of peak demand.

With the combination of all these factors, if there is a cold winter, the only thing that will save the day will be Russian gas.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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