Head of the International Energy Agency (IEA) Fatih Birol said in an interview with the Financial Times that Europe has not yet won the energy war with Russia, despite a significant drop in gas prices. Russia could cut off the remaining gas supplies to Europe, he said, and global demand for liquefied natural gas is likely to pick up as the Chinese economy recovers. This could make it harder to fill up European gas storage before next winter.
“The Russian Federation played the energy card and did not win, Birol said. - But it would be too bold to say that Europe has already won the energy battle.”
He warned that next winter could be harder for Europe than this one if it gets colder. However, in a recent interview with Reuters Markus Krebber, head of the largest German energy company RWEpredicted that gas prices in Europe would not return to record highs last year.
“The situation on the gas market is not so tense now, especially due to the mild winter and the resumption of production at nuclear power plants in France,” - he said.
In August last year, the wholesale price of gas for the European market reached almost 350 euros per MWh due to limited supplies from Russia. Since then, however, it has dropped significantly. Last week, the price of gas for the European market fell below 50 euros per MWh for the first time since 2021. However, it remains significantly higher than before the attack of Russian troops on Ukraine, which, in particular, reduces the competitiveness of European industry.
Fatih Birol noted that the European economy has not yet experienced a serious recession, although it has been hit hard by the energy crisis.
“Gas prices are still seven times higher than in the US, electricity prices are three times higher than in China, - he said. - A long-term solution to energy security must be based on clean energy.”
Earlier reported that Russian President Vladimir Putin does not seem to be able to push Europe to retreat by shutting off gas taps.
See also: “Russia’s budget deficit reached $25 billion due to falling energy revenues” - media
Source: Fakty
I am Joseph Zeman, a journalist who mostly covers world news for the Daily News Hack. I pride myself on being able to find and report stories that others might miss. I have a knack for being able to see both sides of every issue and this allows me to provide readers with well-rounded stories. In addition to my work as a journalist, I am also an author and have written several books on current affairs.
