Demand from China is why gas prices are rising...and it’s not going away

High prices are likely to be with us for the foreseeable future.

January’s headlines have been dominated by Omicron and political drama but for most of us the biggest story of 2022 is likely to be gas prices. And this won’t be true just here in the UK — the whole of Europe is facing a serious energy crisis.

Underlying all of this is a fascinating story about the impact that increased energy demand in China is having on the rest of the world. The implications for household incomes, economic activity and public policy are going to be extremely tricky. So what’s going on?

The market price that energy suppliers have to pay for gas has more than quadrupled since before the pandemic. Among the reasons often given are a lack of gas storage capacity — including the UK decision to close the Rough storage field in the North Sea in 2017

Read the full article on Evening Standard website:

https://www.standard.co.uk/comment/china-gas-prices-rising-russia-energy-b977798.html