Source: Wall Street

European benchmark natural gas prices continued to rise this week, surging to a new record high of $230 a barrel on Tuesday as concerns about supply ahead of winter pushed up energy commodities.

European benchmark natural gas prices continued to rise this week, surging to a new record high of $230 a barrel on Tuesday after several record highs in European gas, carbon and electricity prices. this is because concerns about supply ahead of winter have driven up energy commodities.

Due to rising gas and coal prices in Europe and Asia and the expiration of nuclear power generation in France, TTF natural gas prices in the Netherlands, Europe's benchmark natural gas price, surged above 100 euros per megawatt hour for the first time on Tuesday.

Analysts say the energy crisis continues to worsen and there is no sign of immediate relief.

"extreme tension in the market continues because of fears of a reduction in winter supply, and everything looks set for another week of rising prices. The most traded contract at the TTF center in the Netherlands has climbed to an all-time high again, and it is easy to continue the upward trend today, "ZeroHedge quoted Energi Danmark as saying in a report on Tuesday.

According to Ole Hansen, head of commodity strategy at Saxo Bank Saxo Bank, the Dutch TTF natural gas benchmark rose 12% in early European trading to 106.3 euros per megawatt hour, equivalent to US $36 per million British thermal units or US $205 per barrel of crude oil.

How to deal with Natural Gas shortage in European countries

British consumers and energy companies have been hit hard by soaring natural gas prices, and consumers in other European countries are also facing a sharp rise in electricity and gas bills.

According to BBC, the European Union and European governments are grappling with this winter's energy crisis:

EU

Soaring energy spending has brought great difficulties to countless families, as well as some thorny problems in Brussels.

EU leaders have been busy promoting their comprehensive climate change plan to reduce carbon emissions by 55 per cent by 2030. It covers a wide range of areas, but critics say the plan includes proposals that could lead to a further sharp rise in energy prices.

The EU is developing guidance on mitigation measures that can be taken separately by member States within the framework of EU rules. However, there is no sign that the EU will take any major and focused intervention.

Spain

Energy prices in Spain are closely related to the wholesale natural gas market, so consumer electricity prices per megawatt hour have recently hit record highs. The wholesale price of natural gas in Spain is also the highest among European countries in the second half of 2021.

In September 2021, the coalition government led by Spanish Socialist Prime Minister Pedro Sanchez announced a series of measures aimed at curbing rising energy costs.

These include tax cuts and temporary cuts in excess profits earned by energy companies. The latter has drawn criticism from the energy industry, although the government has clarified that renewable energy suppliers will be exempted. The government says it aims to reduce electricity tariffs by more than 20% by the end of 2021.

Italy

Italy is particularly vulnerable to rising natural gas prices: 40 per cent of its energy comes from natural gas, about half of which comes from Russia. As a result, Italy has been hit hard by falling Russian gas exports to Europe and rising raw material prices.

The Italian government has spent about 1.2 billion euros to control the rise in household energy prices and has pledged another 3 billion euros in aid in the coming months.

Prime Minister Mario Draghi said that in the next three months, some of the original so-called system costs will be deducted from natural gas and electricity bills. They were supposed to increase taxes to help the transition to renewable energy.

Poland

Polish consumers are feeling the pressure of soaring natural gas prices in Europe as the country's energy regulator has approved three energy price increases of more than 20 per cent this year.

But household gas charges are still regulated here, so customers are not much affected by sharp changes in market prices. In addition, about half of Poland's natural gas demand is met by domestic production, which is usually cheaper than imported natural gas.

In Poland, coal is still the main fuel that drives the economy, with natural gas lagging far behind. But that is starting to change. Solar energy in PolandThe market is one of the fastest growing markets in Europe. Poland's state-owned power company is planning to invest heavily in offshore wind power.

The Polish government plans to stop its decades-long dependence on Russian gas next year and replace it with gas from the United States and Norway. Poland said Poland would no longer tolerate the abuse of its monopoly position as a supplier by Russia's Gazprom, which charged exorbitant fees for natural gas.

Norway

Non-EU Norway is one of Europe's largest oil and gas producers, although it is rarely used for domestic needs. Only 1.4% of Norway's electricity is generated by burning fossil fuels and waste, 5.8% by wind power and 92.9% by hydropower.

Equinor Energy of Norway has agreed to allow an additional 2 billion cubic meters of natural gas exports in 2022 to support growing demand in Europe and the UK.