Chinese thermal coal prices have hit a record high. Flooding in the country’s northern Shanxi province, a major coal producer, sent prices on the Zhengzhou Commodity Exchange to ¥1,408 (£161) a tonne on Monday, says Laura He for CNN. That was an all-time high and more than double where they started the year. “Energy shortages have spread to 20 Chinese provinces in recent weeks, forcing the government to ration electricity during peak hours”.
In Europe gas prices have retreated from record highs set earlier this month, but Dutch wholesale prices are still up more than fivefold compared with a year ago. The gas crisis has revealed Europe’s dependence on imported gas, says David Sheppard in the Financial Times. Gas demand is concentrated in the winter months: “About 40% of total gas consumption in the UK goes directly to heating homes, largely condensed into a period of five [or] six months”. Europe has historically relied on Russian imports and liquefied natural gas (LNG) shipments to top it up during winter. But LNG from the likes of Qatar is now heading east as Asian demand for gas has gone up 50% over the past decade.
Moscow has suggested that swift German regulatory approval of its Nord Stream 2 pipeline could ease Europe’s energy woes, says The Observer. The pipeline is still not expected to come online for months. There are claims that the Kremlin has been playing politics with gas, but Russia has little interest in “undermining its finances” and “speeding up Europe’s decarbonisation” by withholding supplies. In any case, Nord Stream 2 is not the solution to the current crisis: even if the pipeline is swiftly approved it won’t be able to deliver significant amounts of gas before the new year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
8 of the best properties for sale with mountain viewsThe best properties for sale with mountain views – from a former monastery in Brecon Beacons, Wales, to a house on St Lucia with views over the Piton Mountains
-
Spot the Dog: £67bn in underperforming funds revealedAround 137 funds consistently underperformed their benchmark, BestInvest's Spot the Dog report finds. Which funds are in the dog house?
-
What does a potential BP and Shell merger mean for the UK oil industry?BP’s struggles have made it vulnerable to a takeover. Could it merge with Shell to create a British behemoth?
-
Should you invest in emerging markets?Emerging markets offer strong, long-term growth and excellent value, says Rupert Hargreaves
-
How to invest in frontier marketsFrontier markets can be extremely risky, but they offer access to exotic stocks in rapidly developing countries
-
Should you put your trust in investment trusts?British investors have steered clear of investment trusts in recent years. They are missing a trick, says Max King
-
Renewable energy investing: who is paying for the green revolution?Investors in renewables have not been rewarded, says Bruce Packard. Will they fund the government’s plans?
-
The best ways to invest in Vietnam – Asia’s communist dynamoVietnam has long been one of our favourite markets. The prognosis remains auspicious, says Alex Rankine.
-
Solar investing: is it too risky?NextEnergy Solar Fund’s steep discount reflects doubts about high debts and the sustainability of its dividend. What does it mean for solar investors?
-
India is a new global powerhouse — should you invest?India’s growth rate has slowed recently, but there is still ample scope for investors to benefit from its development.
