Europe has managed to survive the most acute phase of the energy crisis, but the future is still very uncertain.
- For approximately 500 days (in 2021–2023), Europe was gripped by an unprecedented energy crisis that was characterised by record-high prices—especially for natural gas.
- Supply issues induced by the changing geopolitical landscape have been the central cause of the crisis.
- After reaching an extraordinarily high level of €311 per MWh in the summer of 2022, natural gas prices have dropped by more than 80% by winter 2023, but they still remain more than two times higher than their long-term historical average.
- Europe has managed to withstand the most acute phase of the crisis but at a rather large cost.
- Overall, Europe has adapted and managed to accumulate substantial natural gas inventories, but the situation remains fragile and prices volatile.
- Although the probability of an energy crisis returning this winter is relatively low, such possibility still remains.
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 20 December 2023 – While there are many aspects of the energy crisis in Europe within several markets, including crude oil, coal, electricity, and emission allowances, as well as within several domains, such as EU energy policies and regulation, diplomacy and international relations, this article will focus exclusively on the natural gas market, because it is here where the energy crisis has been most pronounced.
