Experts believe that the price of oil and gas will remain in the short term with the arrival of winter
The world is aware of energy markets and their excesses. Brent oil is trading at 86 dollars a barrel, while natural gas hits all-time highs, around 100 euros per megawatt hour (MWh). A year ago, with part of the world population confined, gas was around 15 euros and crude oil was moving around 40 dollars. Also the price of coal has doubled, dragging fossil fuels to most raw materials. And despite the scare, both gas and oil are still far from the maximums reached so far this century
In this sparkling scenario, voices are raised that predict a price of crude oil above $ 100 or that warn of a winter with cuts in heating and a reduction in industrial production that is already being experienced in some energy-intensive sectors. Meanwhile, the most ominous predict the beginning of a period of stagflation (high inflation without growth), although for now there are only sharp rises in prices.
The desire to go green has led Europe to dismantle coal plants, increasing its dependence on imported natural gas from Russia. At the same time, China's own decarbonization efforts have reduced coal production and increased energy imports. Add to that the colder winter temperatures, OPEC's decision to restrict production, and years of underinvestment, we have the ingredients for an energy crisis.
