The rope is near to breaking on the most unanticipated side. The deliberations revolved, until recent times, around the likelihood of Russia stopping exporting its vast energy reserves to the United States and —especially— to Europe. The West is one step away from cutting to the chase. At least in the case of the United States, whose government is willing to take the step alone even if Europe does not support it. Thought rise of Oil and natural gas prices, are already discounting an extreme that has gone from being preposterous in record time. The primary economic sanctions on Moscow were very cautious about prohibiting energy. It was highly probable.
The reference in Europe, Brent crude is close to 130 dollars per barrel on Monday. It was not so far from the 140 dollars, which it exceeded in 2008. It was a historical utmost. On this occasion, the euro’s depreciation against the dollar that they quoted the currency in which most raw materials also play a determining role. The weaker the single currency is against the greenback, the greater the bleeding is.
The rise of prices of a megawatt-hour of gas and oil has, for its part, exceeded 300 Euros in the Dutch TTF market, the European reference, to later relax to around 220. However, it is 11 times more than it does a year in any case. Further, it is a ‘new peak’ as there are proceedings. Hence the growing chorus of voices asking the ‘Community Executive’ to act vehemently to prevent the infectivity on electricity from continuing ‘sine dies.’