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(Bloomberg) –
European fuel hit a record 100 euros as China intensified the fight over energy supplies, a move that threatens to derail the economic recovery. Then, prices fell.
In volatile trading, benchmark futures contracts gained as much as 2. 3% on Friday before pulling out. China has ordered its state-owned power corporations to keep materials safe for this winter at all costs, according to sources familiar with the matter. for shipments of liquefied herbal fuel and coal, just as flows to Germany through a key Russian pipeline have fallen.
Energy costs are emerging from the U. S. USA To Europe and Asia as the economy recovers from the global pandemic and other people return to offices. Europe is struggling to get enough fuel and coal before winter, and emerging costs are forcing some of the commercial fertilizer giants. CF Industries manufacturers to Yara International ASA and chemical giant BASF SE to close factories or reduce production.
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Governments are struggling to respond to the crisis, with an increasing number of others taking steps to prevent the electorate from suffering the worst effects of emerging prices. France will block any further build-up on regulated fuel price lists and lower taxes on electricity, Prime Minister Jean Castex said on TF1 on Thursday.
“The volatile industry in a position shows that no one knows how far the fuel can go, yet we are definitely in a position for a mad race,” said Niek van Kouteren, a senior industrialist at PZEM, a Dutch power company. : Where will there be destruction of demand? If you then see governments step in and subsidize fuel prices, as France announced yesterday, there is no incentive to reduce demand. “
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Dutch fuel futures rose to a hundred euros in line with the megawatt hour, before falling 0. 7% to 97 euros at 13:05. Prices fluctuated between gains and losses as investors considered asking for relief as more factories closed or cut production.
European garage sites are just under 75% full, the lowest point for this time of year in more than a decade. be well at seasonal normals in October.
Flows from the main Russian supplier to Mallnow in Germany via the key Yamal-Europe pipeline also decreased at the start of the heating season. At an auction on Thursday, no more pipeline capacity was separated to deliver fuel to the Mallnow compressor station the next day. .
Andreas Gandolfo, head of BloombergNEF’s European energy team, said gas can rise as high as it wants to reduce demand. For some European industries, fuel is too expensive. at home, it can probably go much higher before there is a resolution to shut down.
Dealing with more trade closures in Europe also poses a danger to blocking the recanopia of European carbon futures. Some of the companies that produce or close factories are energy-intensive users who have to use carbon emissions to cover their emissions. sell their shares, said Trevor Sikorski, head of energy transition and herbal fuels at London-based experts Energy Aspects.
Carbon costs rose 2. 8% to €63. 48 in line with the tonne, while German electric power gained 3. 8% to €134. 20 in line with megawatt hours.
In Asia, the value of liquefied herbal fuel hit a record $34. 47, consistent with millions of British thermal appliances on Thursday. The charge in Asia and Europe is around $190 consistent with a barrel of crude oil equivalent.
“In the long term, costs are of course incorrect at peak levels and we expect slow normalization next year,” said Oystein Kalleklev, chief executive of Flex LNG Ltd. “But with stocks empty, there will be a fight for replenishment next summer, so it will take a little longer for the market to rebalance.
© 2021 Bloomberg L. P.