German Cold Blast To Extend Into January Amid Energy Crisis
A combination of factors creates a perfect storm of turbulence for many Europeans paying some of the highest energy prices ever.
Natural gas stockpiles remain at low levels as gas flows from Europe are depressed. The continuation of cold weather and an energy crunch is expected to further the crisis.
Deutscher Wetterdienst or DWD for short, is the German Meteorological Service. They released new data Friday forecasting month-ahead temperatures will remain below seasonal levels through the third week of January.
Europeans have no relief in sight as natgas stockpiles dwindle and prices hit new record-highs, forcing utility companies who use fossil fuel generators to charge some of the highest power prices ever.
Making matters worse is Germany’s federal network agency, Bundesnetzagentur, announced Thursday that Russia’s Nord Stream 2 pipeline will come online in July. Say goodbye to new supplies as the Dutch month-ahead gas, the European benchmark, continues to soar to new record highs, printing around 139 euros.
We must point out the situation in the US is the complete opposite. Warm weather and ample supplies have depressed natgas prices. However, that could change next month (read: here).
