The war in Ukraine has caused oil and especially gas price volatility, as restricted flows from Russia to Ukraine caused values to spike to record-breaking levels before collapsing to pre-war levels.
Since December 2022, unseasonably mild winter weather hit demand, reversing gas prices. However millions of tonnes of chemical and fertilizer production remain offline across Europe thanks to the elevated gas prices and poor macro-economic conditions which have impacted demand.
Europe’s energy challenge is immense and put into stark relief by the response to Russia’s war in Ukraine. Cutting the ties that bind EU and non-EU nations to Russian gas and oil will be extremely painful this year and in years to come.
Published by: www.icis.com
Aura Sabadus
08-Sep-2023
