Gas, coal, oil, carbon, and electricity prices have all risen this year, owing to a resurgence of geopolitical conflicts between consumers and producers.The “rapid spike in prices was without a doubt the most remarkable development on the commodities markets in 2021,” according to Commerzbank AG analyst Barbara Lambrecht.Critics argue that Nord Stream 2 would strengthen Europe’s reliance on Russia gas, and Ukraine has called it a “geopolitical weapon.”
Russia energy behemoth Gazprom PJSC has vehemently refuted Western allegations that Moscow is limiting gas deliveries to Europe, which is already suffering from low stocks as economies reopen following COVID-19 disease lockdowns.As wind power has become less available owing to calmer weather, dependency on gas has increased.
Crude oil prices have surged more than 50% this year as demand has recovered and oil-producing nations led by OPEC and allies such as Russia have progressively expanded supplies. It occurred after OPEC+ drastically reduced output last year as the outbreak progressed and virus-related limits drove demand and prices to drop.Although oil prices have climbed again, trading at US$75 per barrel as the New Year begins; Lambrecht believes the increase “seems practically modest in comparison” to gas.
In October, the West Texas Intermediate crude oil contract in the United States reached a seven-year high of US$85 per barrel before falling.Rising oil and gas prices have increased the cost of coal, which is the most polluting fossil fuel, at a time when managements are under rising stress to convert to more environmentally friendly power sources.