Energy prices endanger global upswing

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Oil pumps in Oklahoma

Photo: epa Larry W. Smith / dpa

According to the International Energy Agency (IEA), a global energy crisis could slow the global recovery from the corona pandemic.

Expensive energy prices added inflationary pressures, which, along with power outages, could slow the economic recovery, the agency said in its monthly oil report.

At the same time, demand will be boosted.

"Record prices for coal and gas as well as recurring outages are causing the power sector and energy-intensive industries to turn to oil to keep lights on and keep operations going," writes the IEA.

The global energy crisis could increase the demand for oil by half a million barrels a day.

As a result, global demand in the coming year will probably be back at the level before the pandemic.

The agency estimates that the large oil-producing countries, which are grouped together in the so-called Opec +, will remain around 700,000 barrels per day below the expected demand with their crude oil production in the fourth quarter.

Energy prices had recently reached record levels. The gas price in international wholesale, for example, has actually fluctuated between 15 and 20 euros per megawatt hour on a long-term average; it is currently 65 euros. Electricity on the stock exchange has become around 140 percent more expensive in Germany since the beginning of the year, and in Spain by as much as 425 percent. In some cases, oil prices have reached their highest levels in three years.

The main reason is an imbalance between supply and demand.

As a result of the economic recovery after the pandemic, production has picked up again worldwide - and with it the demand for energy has increased.

In some cases, the offer could not keep up with this.

In addition, the higher costs for EU emission rights are driving up prices.

Such papers will have to be bought by utilities and factories if they emit carbon dioxide into the atmosphere.

Germany's companies are particularly suffering from high gas prices.

Because the substance is required in countless industrial processes.

German consumers are feeling the consequences of the energy price crisis even more directly than companies: their suppliers are already raising prices in many places.

ssu / Reuters