As the energy crunch intensifies, many countries start thinking about the upcoming winter and their LPG supplies right now. Even Asian countries, which have been taking advantage of cheap Russian gas for a long time, realize that the winter may be cold. Hence, they are now actively stocking up on energy commodities. Local companies have entered into a competitive struggle with Europe to get backup fuel supplies.
Asian buyers of liquefied natural gas (LNG) have to rival the EU for additional gas supplies. LNG futures for winter delivery in Asia spiked to the highest level in more than two months. Notably, spot prices in Europe also soared to a seasonal high due to the global supply crisis, exacerbated by the conflict in Ukraine. It appears that prices may skyrocket to unprecedented highs in the foreseeable future. If the competition for energy supplies becomes fiercer, then energy prices are sure to reach new all-time highs.
In the battle for fuel, Asia and Europe are trying to find alternative sources of gas supplies from such countries as Nigeria, Qatar, Angola, and the UAE. Meanwhile, sanctions on Russia have left equipment key for the functioning of the Nord Stream gas pipeline stuck abroad. It means that supplies to Europe may be suspended for some time.
The impending energy crisis may trigger an increase in electricity bills and boost inflation. Earlier, the media reported that the level of gas reserves in underground storage facilities (UGS) in Europe approached a record high.