Commodities
MET Group Warns of Energy Crisis as Gas Prices Soar
Europe's energy crisis is set to worsen this winter due to soaring gas prices. The head of Swiss energy company MET Group, said that long-term contracts for seaborne gas supply are needed to hedge against these price increases.
The European gas market has seen prices more than double in the past year, with Asian buyers increasingly snapping up flexible spot cargoes. This sets the stage for fierce competition between regions this winter.
According to MET Group's head, the war in the Middle East has effectively cut off about a fifth of the world’s liquefied natural gas flows. This reduction in supply has driven up prices and highlights the need for long-term contracts to provide stability.