Surging energy prices in Europe are hurting more than just consumers.
The record European natural gas prices are sending Asian spot prices of liquefied natural gas to record levels for this time of the year-between peak summer demand and ahead of the winter heating season.
Europe's tight gas market, low wind speeds, abnormally low gas inventories, and record carbon prices have combined in recent weeks to send benchmark gas prices on the continent and power prices in the largest economies to record highs.
Almost daily, gas and power prices in Europe surge to fresh records, putting pressure on governments.
It's not only consumers that struggle with the record energy prices.
"Record high natural gas prices in Europe are impacting ammonia production margins, and as a result Yara is curtailing production at a number of its plants. Including optimization of on-going maintenance, Yara will by next week have curtailed around 40% of its European ammonia production capacity," the company said.
Its operating profit for the second quarter of its fiscal year nearly halved as "The significantly higher net raw material cost and the recent rise of energy prices to record levels were the main burdens on the results."
Monday, September 20, 2021
Skyrocketing Energy Prices Could Cripple Europe's Economy
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