❗️ A gas crisis is looming in the United Kingdom. ⚠️
Britain has enough natural gas reserves for only about two days, the Daily Mail reports with alarm.
According to new data from National Gas, the country’s gas reserves have fallen from 18,000 GWh last year to 6,700 GWh, which covers roughly 1.5 days of consumption. A comparable volume of gas is currently stored as liquefied natural gas (LNG).
Traders are reportedly taking advantage of the situation, driving up prices while knowing that the UK has little choice but to outbid European competitors. As a result, Britain is currently paying the highest wholesale gas prices in Europe.
The newspaper notes that the UK once maintained gas reserves sufficient for around 12 days, but the system collapsed after successive governments stopped funding it. The report warns that another crisis — a fuel crisis — could emerge by the end of March.
Goldman Sachs has warned that the current drop in Middle Eastern oil production is 17 times greater than the peak decline in Russian output following the start of the Ukraine war. The bank said:
“We now believe oil prices are likely to exceed $100 per barrel next week unless there are signs of a resolution by then. We also consider it likely that oil prices — especially petroleum products — could surpass the peaks seen in 2008 and 2022 if oil flows through the Strait of Hormuz remain limited throughout March.”
The Daily Mail adds that if the situation does not change, gas and fuel crises could converge in the summer, when a new energy price cap is scheduled to be introduced in July.
Some analysts are already warning that hyperinflation and a sharp decline in the value of the pound sterling could occur before the end of spring. 📉
Original Post
Follow TRN 👈