Saxo Bank Fears Weakening Of EU Economy Due To Rising Gas Prices

Rising gas prices could hit competitiveness of the European Union economy on a global scale, said Ole Hansen, head of commodity market strategy at Saxo Bank.

On Wednesday, the gas price on the futures market in Europe once again reached a historic high, exceeding $ 950 dollars per 1 thousand cubic meters. The reasons for such jump in prices were low stocks in the European UGS prior to the heating season, low supplies from Russia, as well as the uncertainty with the launch of Nord Stream 2.

In addition, rising prices could lead to power outages in the EU this winter, Hansen warned.

« If the increase is not contained soon, it risks bringing a difficult winter with power outages and reduced competitiveness of energy-intensive industries, which are under pressure from soaring gas and electricity prices, » the expert said.

Energy-intensive industries located mainly in Germany and France will suffer most of all, he added.

source: reuters.com

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