FX.co ★ Energy scramble in Europe to intensify

Experts at US-based publication OilPrice assume that reduced energy supplies amid tougher anti-Russian sanctions and halted gas supplies via Europe's key routes will provoke the bloc's desperate fight to solve its energy crisis. OilPrice is sure this will lead to fierce competition between European Union countries, which is likely to continue after the winter of 2022-2023.

According to research consultancy Energy Aspects, the crisis confronting the region may well last more than one winter. Analysts warn that European countries will have to reduce energy use in order to keep the market in balance. This strategy should be followed throughout the current and next winters.

Germany's Bundesbank says that an energy squeeze is tipping the country’s economy into a recession. Moreover, it is expected to intensify as winter looms. After all, a surge in power and gas prices adds to growing pressure on the economy.

Against this background, the German government intends to nationalize struggling gas giant Uniper. This measure is necessary to keep the industry afloat.

At the moment, most industrial enterprises in Europe are forced to cut or halt production due to a sharp rise in energy prices. The European Commission is currently working on ways to help shield households and businesses from surging energy costs. However, these measures are not enough to overcome the energy crisis and cold winter, experts believe.