A natural gas shortage is affecting people all across the world. In the last two weeks, power prices in Germany and France have risen by roughly 40%. Many governments, like the United Kingdom and Spain, are hurrying through emergency measures to protect consumers. From aluminum smelters in Mexico to fertilizer plants in the United Kingdom, factories are being temporarily shut down. The markets are in a frenzy.
Almost everyone was caught off guard by the shortage. Due to new LNG plants coming online in America, there was plenty of gas on the worldwide market in 2019. When the covid epidemic hit and demand was restrained by lockdown, much of the extra gas was stored in Europe. That came in handy last winter, when northern Asia and Europe were unusually frigid. The cold weather increased demand for heating. Gas prices in Asia have doubled in three months.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
