Gas prices in Europe continue to break records as uncertainty over supply is escalating. At the same time, electricity prices soared in France amid a power outage.
The latest challenge for EU is the tropical depression "Nicholas", which may hit the US Gulf Coast in the coming days. It already affected one plant that produces liquefied natural gas for export.
Weak wind power in the UK also increased demand for gas for electricity generation. And sadly, a fire at a key UK converter station cut off the main cable carrying electricity from France, which created problems and exacerbated the UK's energy crisis. Accordingly, gas and electricity prices jumped.
UK has always been a net importer of electricity and France is its largest supplier. As such, the power outage in the country should last until October 13, which is bad news because supplies are already insufficient, not to mention prices are strongly peaking.
But even if flows on the key route to Germany recovers, there is no confidence in additional supplies. Many are waiting for upcoming auctions in October for additional transport capacity.