Europe is at risk of power outages this winter due to insufficient gas reserves and over the long-term, oil could rise above $100 a barrel, the chief executive of commodity trading giant Trafigura said on Tuesday.
Demand for oil, coal and natural gas as well as metals such as cobalt, nickel and copper have soared as the global economy reopens from COVID-19 restrictions, triggering price spikes that threaten the nascent recovery.
European gas prices have hit record highs this year prompting some countries to respond with emergency measures such as price caps and subsidies but that may not be enough, Jeremy Weir said.
“We haven’t got enough gas at the moment quite frankly, we’re not storing for the winter period. So hence there’s a real concern that there’s a potential if we have a cold winter that we could have rolling blackouts in Europe,” Weir said at the FT Commodities Asia Summit.
Russian state gas monopoly Gazprom, a major exporter to Europe, started refilling its European storage facilities last week but on Monday it booked lower pipeline capacity for December.