If you are not following the growing global energy crisis, you should be. This global power crisis could end up being the biggest economic story in the world and in fact it might already be.
Here’s the rundown of everything happening around the world right now.
The United States energy prices are up whereby oil is nearing US$80 a barrel from US$50 a barrel at the beginning of this year, gasoline prices responding to their highest level since 2014 and natural gas in the United States at its highest in a decade.
But, that is nothing compared to what is happening around the world.
In the United Kingdom, natural gas prices have soared. In fact, on an equivalent basis on the spot market, it’s trading at US$200 a barrel of oil equivalent. Energy prices are soaring as well and now France may cut off power to the United Kingdom because of a fishing dispute.
Coal price traded in Holland have nearly doubled in a month up by 90% in four weeks.
And in Asia, things are not looking that good as well. You have got rolling blackouts and coal shortages as well. Liquid natural gas prices are up above US$30 and India has just four days of coal stocks left to power some of its power plants.
There is no end in sight to much of this risk. If the weather turns colder, as we head into winter, not only they could run out of power but heating bills for tens of millions of people will soar.
It is important to remember that natural gas is a massive input cost in making nearly everything. Analysts are already expecting ‘greenflation’ which threatens to derail climate change action. It would be interesting to see the outcome of the world’s biggest ever climate summit which is about to start in Scotland at the end of October.