Driving Force In New Cold War: 700% Costlier Gas
Business Standard|July 06, 2022
The steep rise in gas prices in Europe since the start of last year is pushing the continent to the brink of recession
Driving Force In New Cold War: 700% Costlier Gas

One morning in early June, a fire broke out at an obscure facility in Texas that takes natural gas from US shale basins, chills it into a liquid and ships it overseas. It was extinguished in 40 minutes or so. No one was injured.

It sounds like a story for the local press, at most except that more than three weeks later, financial and political shockwaves are still reverberating across Europe, Asia and beyond.

That's because natural gas is the hottest commodity in the world right now. It's a key driver of global inflation, posting price jumps that are extreme even by the standards of today's turbulent markets - some 700 per cent in Europe since the start of last year, pushing the continent to the brink of recession. It's at the heart of a dawning era of confrontation between the great powers, one so intense that in capitals across the West, plans to fight climate change are getting relegated to the back-burner.

In short, natural gas now rivals oil as the fuel that shapes geopolitics. And there isn't enough of it to go around.

It's the war in Ukraine that catalysed the gas crisis to a new level, by taking out a crucial chunk of supply. Russia is cutting back on pipeline deliveries to Europe - which says it wants to stop buying from Moscow anyway, if not quite yet. The scramble to fill that gap is turning into a worldwide stampede, as countries race to secure scarce cargoes of liquefied natural gas ahead of the northern-hemisphere winter.

The new oil?

This story is from the July 06, 2022 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the July 06, 2022 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM BUSINESS STANDARDView All
China Realty Crisis Ripples Through Its Biggest Banks
Business Standard

China Realty Crisis Ripples Through Its Biggest Banks

China's protracted property downturn is eroding the balance sheets of the nation's largest state banks as their bad loans creep up.

time-read
2 mins  |
March 29, 2024
Essential Drug Prices To Remain Flat In 2024
Business Standard

Essential Drug Prices To Remain Flat In 2024

Prices have risen 10-12% two years

time-read
2 mins  |
March 29, 2024
Tejas Mark-1A Makes Its Successful First Flight
Business Standard

Tejas Mark-1A Makes Its Successful First Flight

The first Tejas Mark-1A fighter aircraft took to the skies from the Hindustan Aeronautics Limited (HAL) facility in Bengaluru on Thursday.

time-read
2 mins  |
March 29, 2024
Business Standard

Enhance portfolio resilience by investing in MNC fund

When the equity markets turn volatile, investors look for funds that can weather difficult times.

time-read
2 mins  |
March 29, 2024
Business Standard

Listing plans of housing finance arm spur Bajaj Fin

Stock trading higher for seventh straight day, rallied 13% over past two weeks

time-read
2 mins  |
March 29, 2024
Business Standard

Valuation concerns may limit gains for Phoenix Mills

From its highs last month, the stock of mall developer and commercial real estate major, The Phoenix Mills is down about 5 per cent.

time-read
2 mins  |
March 29, 2024
Business Standard

Sebi cancels registration of Karvy

Capital markets regulator Securities and Exchange Board of India (Sebi) on Thursday cancelled the registration of Karvy Investor Services Ltd (KISL) as a merchant banker for breach of eligibility criteria.

time-read
1 min  |
March 29, 2024
Business Standard

48% active largecap funds outperformed last year

The active largecap mutual fund (MF) schemes showed an improved performance in calendar year 2023 compared to their longer-term track record, according to the S&P Indices Versus Active Funds (SPIVA) report.

time-read
1 min  |
March 29, 2024
Business Standard

Zerodha Fund House AUM up by ₹500 cr in 40 days

Zerodha Fund House, a between joint venture Zerodha and smallcase, witnessed substantial growth with its Assets Under Management (AUM) surging ₹500 crore in just 40 days, taking the total tally to cross ₹1,000-crore mark.

time-read
1 min  |
March 29, 2024
ICICI Securities gets approval from shareholders for delisting
Business Standard

ICICI Securities gets approval from shareholders for delisting

Broking and investment banking outfit ICICI Securities has secured shareholders' approval to delist the stock.

time-read
2 mins  |
March 29, 2024