It’s 20 degrees here in Ottawa . For October, that’s something of a heatwave, and it’s meant to stay this way for a week or so, well into the middle of the month. Beyond that, the weather guys say that we’re in for a generally warm autumn. No need for the winter tires just yet.
Europe, though, is said to be headed for a deep cold spell in the coming months. So good for us, bad for Europe – unless you like winter sports, of course, in which case it’s the other way around. But regardless of what weather you prefer, cold has consequences, one of which is that you have to turn the heating up, for which you need fuel. And in the modern post-coal world, that increasingly means burning natural gas.
Unfortunately, this is a bad time to do so, for the price of natural gas has shot up in recent months, as you can see from the chart below. This is a result of increased demand, reduced output from wind turbines, and a reduction in supplies as Europe’s main suppliers – Norway and Russia – fill up their own stocks before winter. This has apparently ‘all but wiped out stocks’ in the rest of Europe. The markets have responded with a binge of frenzied speculation, shoving natural gas prices up to unnaturally high levels.
Which is obviously Russia’s fault. Because, well … it’s bad, and it’s natural gas, and so Russia must be to blame. After all, we know that all those traders on the futures markets take their orders from the Kremlin.Continue reading Full of Gas