China's energy crisis worsened on Friday with rising coal prices as cold weather enters and rising electricity prices make big energy companies want to work longer with American suppliers, sources told.
Energy security is on the rise in government programs in Asia and Europe as shortages of coal and rocket prices have caused power outages and crowding companies that offer big names like Apple just as the global economy rises to the limit of coronavirus.
To protect consumers from rising prices as winter approaches, European Union leaders seem determined to light up emergency member states including prices and subsidies, at a conference next week. Learn more
China, the world's leading exporter, has also been in deep trouble and to close the gap on major energy companies such as Sinopec Corp. and China National Offshore Oil Company (CNOOC) in high-level talks on long-term contracts with US suppliers of natural gas (LNG). , sources told.
The talks could lead to tens of billions of dollars in agreements that will show China's increase in LNG imports from the United States at a time when relations between the two countries are still tense. At the height of the Sino-US trade war in 2019, gas trade has stagnated. Learn more
"Like state-owned enterprises, all companies are under pressure to maintain consumer security and inflationary pressures have dramatically changed the image of long-term assets in the mindset of leadership," said a Beijing-based businessman.
With the war on global warming, China and other countries have turned to coal in a short period of time. Beijing has also taken a number of steps to address inflation, including increasing domestic coal production and cutting feeds for energy-hungry industries.
The January Zhengzhou CZCc1 hot coal power contract reached a record high of 1,669.40 yuan ($ 259.42) per ton on Friday, as it has risen more than 200% a year so far.
China has assured consumers that energy supplies will be protected during the winter heat. Learn more(ads2)
Oil Prices still Jumping High
President Vladimir Putin told Europe this week that Russia, the region's largest gas supplier, could offer more gas if asked but some European politicians have blamed Moscow for using a fuel crisis, a claim denied by Russia.
Oil prices also rose on Friday with the latest trade since 2014 close to the $ 85 Brent crude equity bar as global gas and coal explosions are encouraging more consumers to switch to refined products.
Poland's weather minister said on Friday the government would provide consumers with 1.5 billion zł ($ 380 million) in grants to alleviate pain as store prices fall. Learn more
Germany has confirmed that it is hitting the consumer credit bureaux to help with growing debt. Learn more
European natural gas prices are likely to return to “normal” levels before 2023, warns Dutch bank ABN Amro.
Norway, Europe's second-largest gas supplier, has been among the energy crisis survivors, reporting an increase in trading volume by 28% to 53.7 billion Norwegian crowns ($ 6.37 billion) last month due to rising gas sales, according to official sources.
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