Global Gas Rally… Bloomberg

Is the top in sight?

Here is the story from Bloomberg’s Stephen Stapczynski and Anna Shiryaevskaya…

”Higher gas prices, which hit a 13-year high in Europe this week, will make it more costly to keep the lights on in Madrid or cool apartments in Tokyo, after scorching heat waves in some regions are already making it more expensive to run air conditioners. The cleaner-burning fuel is the latest commodity to add to the global inflation scare as the price of everything from crude oil to corn and copper surge.

If a gas deficit does develop during the winter months, it could spur European utilities to burn more coal, which has already started happening, and cause China’s power producers to curtail supplies to industries and cause blackouts like it did last winter. Households are set to pay sky-high utility bills and the worst-case scenario — albeit unlikely — is they won’t have heating or electricity when freezing temperatures hit.”