The circumstances are causing central banks and investors to worry. India, which remains extremely dependent on coal, said this week that as many as 63 of its 135 coal-fired power plants have two days or less of supplies. The frenzy to secure natural gas is also pushing up the price of coal and oil, which can be used as substitutes in some cases, but are even worse for the climate. Steam billows out of the cooling towers at a coal-fired power station in Nanjing, China. He thinks that anxiety has caused the market to break away from the fundamentals of supply and demand. “A lot of it is feeding off of fear about what the winter’s going to look like,” said Nikos Tsafos, an energy and geopolitics expert at the Center for Strategic and International Studies, a Washington-based think tank. Prices remain much lower in the United States, a net exporter of natural gas, but still have shot up to their highest levels in 13 years. In East Asia, the cost of natural gas is up 85% since the start of September, hitting roughly $204 per barrel in oil terms. In Europe, natural gas is now trading at the equivalent of $230 per barrel, in oil terms - up more than 130% since the beginning of September and more than eight times higher than the same point last year, according to data from Independent Commodity Intelligence Services. “The immediate priority should be to mitigate social impacts and protect vulnerable households.” ![]() “This price shock is an unexpected crisis at a critical juncture,” EU energy chief Kadri Simson said Wednesday, confirming the bloc will outline its longer-term policy response next week. Consumer advocates in Europe are calling for a ban on disconnections if customers can’t promptly settle what they owe. In China, rolling blackouts for residents have already begun, while in India power stations are scrambling for coal. Governments around the world are trying to limit the impact on consumers, but acknowledge they may not be able to prevent bills spiking.įurther complicating the picture is mounting pressure on governments to accelerate the transition to cleaner energy as world leaders prepare for a critical climate summit in November. Predictions of $100 oil.Ī global energy crunch caused by weather and a resurgence in demand is getting worse, stirring alarm ahead of the winter, when more energy is needed to light and heat homes. IBuyXS Can Help You With Your Supply Chain NeedsĬontact one of our product specialists who will quickly respond to your critical supply chain needs at 1-80 or click the button below.Astronomical increases in natural gas prices. ![]() Power rationing could create new headaches for the tech supply chain, although likely not as severe as the worldwide shortage of computer chips that has hammered everything from cars and washing machines to other electronics.Īre you running into delays and having trouble finding electronic components? ![]() Major international suppliers are bracing for impact on businesses already confronting delays caused by shortages and global shipping delays. Local officials said Monday that many firms are trying to reduce demand by working two or three days per week. Power shortages have also hit the southern province of Guangdong, a major industrial and shipping hub. The newspaper reported Tuesday that power rationing in Heilongjiang, Jilin and Liaoning provinces has “resulted in major disruptions to the daily lives of people and business operations.” And supply has been cut to some homes, reportedly even trapping people in elevators.Īn “unexpected and unprecedented” power cut hit three northeastern provinces on Monday, according to the Global Times, a state-run tabloid. The power supply shortage in China is impacting chip production.Ī growing power supply crunch in China is triggering blackouts for households and forcing factories to cut production, threatening to slow the country’s vast economy and place even more strain on global supply chains.Ĭompanies in the country’s industrial heartlands have been told to limit their energy consumption in order to reduce demand for power, state media has reported.
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