Europe "accidentally" rescued from gas crisis?

According to Bloomberg commentator Javier Blas recently, the crisis in industrial production has become a "strong ally" of Europe in holding down gas prices before the onset of the cold winter.

The gas crisis is a serious problem in Europe. (Illustration photo. Source: AFP)

"The industrial crisis that is spreading across continental Europe (industrial activity in Germany has been in decline for the past 14 months) is the best antidote to the gas shortage. With such 'friends', who needs enemies?", Mr. Blas commented.

Europe is “beating” the energy crisis thanks to its impact on its industrial heartland: Across the continent, energy-intensive companies that can’t cope with rising energy prices are closing or scaling back production, Bloomberg’s correspondent said.

As Blas points out, Morgan Stanley predicts total gas demand in Europe will be 15% lower than the five-year average.

“The price of avoiding an energy crisis would be a serious decline in manufacturing and a loss of long-term economic growth. High prices solve the problem of price increases. But there is always a price to pay for it,” the observer concluded.

On August 28, gas prices in Europe increased by 8% to 420 USD/1000 cubic meters.

Experts said the move leading to the price increase was a decline in gas exports from Norway via pipeline and concerns among market participants that the supply of liquefied natural gas (LNG) from Australia could be disrupted due to the possibility of strikes at major LNG production enterprises in this country.

However, at the end of the trading session on August 29, gas prices had dropped nearly 10%, down to 387 USD/1,000 cubic meters.

Source: https://baoquocte.vn/chau-au-vo-tinh-duoc-giai-cuu-khoi-cuoc-khung-hoang-khi-dot-240233.html