Gas prices in Europe are returning to pre-war levels

Gas prices in Europe are returning to pre-war levels
Gas prices in Europe are returning to pre-war levels
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Gas prices in Europe are returning to pre-war levels

The Supreme Representative of the Union believes that it is completely free from dependence on Russian energy


Monday – 1 Rajab 1444 AH – January 23, 2023 AD Issue No [
16127]

A gas station in Poland with two signs warning of approaching it (Reuters)

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aawsatLogo.jpg

London: «Asharq Al-Awsat»

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Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy, said that the European Union has completely eliminated dependence on energy from Russia, after the return of gas prices to pre-war levels.
“Within a few months, we got rid of energy dependence on Russia,” Borrell said, in an interview with the Spanish newspaper El Diario, published on Sunday, according to the Russian news agency Tass. Borrell added to the Spanish newspaper: “We have gone through a very tense period of high prices. But she returned to her pre-war values.” “We are again with pre-war gas prices per megawatt hour, which were already very high,” he said. But the reason behind the wrenching peak in August was largely the speculative tensions in the markets.
Borrell added that the tensions in the energy market can no longer be traced back to the situation in Ukraine. “It is a structural problem of energy, especially the link between gas prices and electricity prices.” He said he hoped the European Commission would present a proposal to rectify the situation soon.
In a related development, the British newspaper “Financial Times” reported, quoting government officials, that the Netherlands is seeking to close the largest gas field in Europe this year, due to safety concerns.
The “Financial Times” quoted Hans Philbreve, the Dutch Minister of State for Mining, as saying that the Dutch government plans to close the earthquake-prone Groningen gas field by the first of next October. But it will watch to see if there is a shortage of gas in Europe after this winter, according to Bloomberg.
Filpreev added that if necessary, work in the gas field could continue until October 2024. Filbreev said, according to a report in the “Financial Times”, that the gas field located in the northeastern Netherlands, near the German border, produces only a small part of its energy. Despite this, production continued when the Dutch government came under pressure to increase gas extraction last summer; Where the Russian invasion of Ukraine caused a huge shortage of gas in Europe. A parliamentary investigation is scheduled to be conducted to confirm that previous governments covered up the fact that gas extraction causes earthquakes, and the results will be presented next month, according to the newspaper report.
Energy prices in Europe contributed to the rise in inflation rates to record levels that the member states of the European Union had not reached for several years, which increased social unrest in some countries, most notably: Germany, France and Greece.
In this regard, Claes Knut, a member of the European Central Bank’s Governing Council, said in an interview with the Dutch station “WNL” yesterday that the bank is scheduled to raise interest rates by 50 basis points in February and March, and that it is He will continue to raise prices in the following months. He added, “Expect that we will raise interest rates by 0.5 percent in February and March. They expected that we would not be satisfied with that, and that more steps would be taken in May and June.
In a separate interview with the Italian newspaper “La Stampa” also published yesterday, Knut said it was too early to predict whether the European Central Bank should slow down the pace of interest rate hikes by the summer.
He continued, “At some point, of course, the risks to the inflation outlook will become more balanced… There will come a time when we can take another step to bring the pace down from, say, 50 to 25 basis points. But we are still far from that.”

Europe

European economy

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