By Matthieu Favas: Finance correspondent, The Economistof Russia’s invasion of Ukraine has been a long tunnel for energy users—with no light in sight. Western sanctions and supply cuts from Russia have put pressure on the global oil-and-gas trading system, which was already strained by a sharp rebound in demand after the pandemic and by years of low investment in new production. In theory 2023 could look a little better.
Economic slowdowns will smother oil demand, but disruptions to supply may well keep the petroleum market off balance—the first danger. Once Europe implements its boycott of Russia’s seaborne crude oil, in December, China and India will buy even more than they have in 2022, helping to keep Russia’s barrels in the market. As Europe’s vast imports are re-routed to Asia, new bottlenecks are bound to appear.
Perhaps the wildest card is gas. . Nobody expects it to reopen flows through Nord Stream, its main pipeline to Europe, which is anyway badly damaged after being sabotaged in September. But it could cut supplies through other pipelines that are still delivering gas to Europe, such as the one that runs through Ukraine, and stop deliveringcould strengthen measures aimed at capping the cost of Russian hydrocarbons and otherwise make it more difficult for other countries to buy from its foe.
The next few months will test the West’s resolve. But don’t expect much of a truce in its energy wars with Russia once the winter is over.This article appeared in the Finance section of the print edition of
And for Europe it will be self inflicted.
Hey hmm…water is wet…
Heat blocking curtains to block heat loss. Replace old inefficient appliances with most efficient you can find. Insulate. Put up double- or triple-paned windows. Heat pump. Cheaper, more security, will lose heat more slowly in event of outage. This is a permanent problem...
Western communities in America & Europe funding the killing of Russians must be condemned by the world. Russia is only, legally, reclaiming lost territories over the centuries!
Stand with Ukraine 🤡
Right out of America
Don't blame me I didn't vote nor cheat in order for the crook in office and minions to destroy the nations.
Everyone is hoping for global warming cuz oil is too expensive to burn.
So now global warming is a good thing?
And then .. just like that .. when you take away peoples oil/gas .. they hoped for global warming
Why not since many craven Europeans are already talking land for peace just like Chamberlain
The gap between inflation and interest rates is very clear. I think Europe is late 🙃😘
Is it Russia or is it the sanctions against Russia that are having this effect?
Isn't Europe doing the same thing?
Brandon is behind US inflation.
The great game destroy economy of the world