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 spike has been fuelled by geopolitical tensions surrounding Russia, which supplies one third of Europe's gas. Russian energy giant Gazprom has strongly rejected Western accusations that Moscow is limiting gas deliveries to Europe, already hit by low stocks as economies reopen from pandemic lockdowns.OPEC OIL IMPACT
Although crude prices have shot back up, trading above US$75 per barrel heading into the new year, the jump"seems almost moderate by comparison" with gas, noted Lambrecht. This helped to push up European carbon prices, which reached above 90 euros per tonne for the first time in December, around three times the level at the start of the year.