LONDON – Energy prices soared in 2021 — with gas, oil, coal, electricity and carbon all shooting higher in large part owing to a resurgence of geopolitical tensions between producers and consumers.
The “steep rise in prices was probably the most dramatic development on the commodities markets in 2021”, noted Commerzbank analyst Barbara Lambrecht.
The most spectacular surge was that of Europe’s reference gas price, Dutch TTF, which hit 187.78 euros per megawatt hour in December — 10 times higher compared with the start of the year.
The spike has been fuelled by geopolitical tensions surrounding Russia, which supplies one third of Europe’s gas.
Western countries accuse Russia of limiting gas deliveries to put pressure on Europe amid tensions over the Ukraine conflict and…
