The gas price in Europe rose to a new record on Thursday, only to fall sharply afterwards. The price for a liter of domestic heating oil (gas oil heating 50 S) will also reach a new record tomorrow. The high energy prices are a result of the Russian war in Ukraine.
–
From an order of at least 2,000 liters, the maximum price of domestic heating oil increases by 8.05 cents per liter to 1.1120 euros, the Federal Public Service Economy reported. The price increase is a result of the quotations of oil products on the international markets. They have been rising for days as a result of the war in Ukraine.
–
Gas
European gas prices also hit a record today. At around 9.30 am, the price for gas that will be supplied next month on the leading Amsterdam gas exchange reached 199.99 euros per megawatt hour. A day earlier, the gas price had risen to more than 194 euros. The gas price was thus again more than 20 percent higher than at the close of the trading day on Wednesday. But an hour later, the price dropped to just under 160 euros per megawatt hour.
–
Traders are concerned about possible sanctions on Russian oil and gas. They also fear that the gas pipeline from Russia via Ukraine to Slovakia could be damaged during the battle. The gas pipeline is currently still in use. It even transports more gas than was usual in recent months. The reason that gas prices are still rising is because they look at so-called futures, contracts for delivery the following month. This leads to greater uncertainty and therefore the possibility of stronger price movements.
–
Oil
Oil prices continue to rise as a result of the war in Ukraine. Both American WTI oil and Brent oil were more than 5 percent in the plus on Thursday. Brent oil, the benchmark for oil from Europe, the Middle East and Africa, exceeded $119 for a 159-litre barrel. US oil costs more than $116.
–
Russia accounts for about 11 percent of global oil production. About two thirds of that oil is exported by ship, but that is difficult at the moment. Many oil tanker owners err on the side of caution for fear of additional sanctions and keep their ships away from Russia. There are also signs that traders do not want to buy Russian oil for fear of damage to their reputation.
–
This week, the oil cartel OPEC+ announced it would not increase oil production more than the group had already planned. At the next OPEC+ meeting at the end of this month, it is likely to be more difficult to ignore the war in Ukraine. Then it should be clear whether Russian oil production and sales have really declined and whether other countries should take steps to correct that.
–
Coal
The price of coal, which is used to generate electricity, also rose sharply on Thursday. The price hike during the trading session in Asia, the fuel’s largest market, follows concerns about disruptions to coal supplies from Russia. Those concerns about supply from Russia, which accounts for more than 17 percent of global coal exports, come on top of already existing supply problems in the sector.
–
Global commodity markets have been in turmoil since Russia’s invasion of Ukraine last week. Although there are no direct Western sanctions in the field of energy yet, traders are trying to secure alternative supplies of fuel and raw materials as soon as possible for fear of additional sanctions in the future.
–
The price for high-quality thermal coal, used by power plants and shipped from the port of Newcastle in Australia, rose $140.55 in one day to $446 a tonne. That is the highest level since 2008, according to data from ICE Futures Europe. Prices of coal shipped from Newcastle have more than doubled since the Russian invasion of Ukraine. In March last year, 80.50 dollars per ton was paid.
–
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.
–
–
