Crude oil price to go up due European Gas Crisis: Moldova declares energy emergency!

 

European gas crisis - Moldova

Moldova, the former Soviet Republic sandwiched between Ukraine and Romania, declared a state of energy emergency in the afternoon on Friday, increasing the pressure on natural gas markets and of course, oil markets too as an inevitable consequence in the end.

Russian energy giant, Gazprom, had been supplying natural gas for Moldova up until the contract expired in September. Although Russia renewed the contract up until the end of October, Gazprom increased the price of gas by more than 14% per a cubic meter of gas.

The grim situation in Moldova shows how Europe has become at the mercy of Russian energy might, especially when the continent moves into the winter – in the absence of a substitute.

The emergency is going to last until November 20, by which the country needs to find funds to purchase gas for its population of 2.6 million people; it needs over 2.8 billion cubic meters of gas every year, with the bulk being used for harsh, colder months.

As there is no end in sight to the gas crisis in Europe – and across the world – it is inevitable that countries turn to other fossil fuels as the last resort, including coal.

The crisis in the gas supply, in this context, will inevitably lead to higher oil prices, when the OPEC+ say there is so much that they can do in boosting the output, blaming it on years of under-investment in light of the momentum of going green.

The wind energy, meanwhile, is notoriously unreliable: for instance, in the UK, during the past summer months, the slow winds brought down the contribution of the wind turbines to the National Grid substantially; as a result, the power suppliers turned to other oil and coal that resulted in their price hike.

The wind conditions have improved in the recent days, though. As a result, the reliance on the oil, and coal has somewhat eased in the United Kingdom. The situation, however, is not universally encouraging in the rest of Europe.

The decision makers in the major European governments have come under fire over the way they handled the issue, up until it got worse; lingering political bickering, meanwhile, gets in the way when it comes to finding a collective solution – as usual, the urgency becoming secondary in importance.

 

 

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