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The worst of Europe's energy crisis isn't over

By Javier Blas

05 Dec 2022 · 4 min read

Editor's Note

Localized blackouts remain a strong possibility if Europeans experience a cold winter, argues Bloomberg’s energy columnist. Just a few degrees Celsius could make a big difference.

I'm a glass half-empty kind of person. If anything could go wrong, I assume it will go wrong. And that's the lens through which I look at the European energy crisis. Perhaps my biases cloud me, but I think we should all be skeptical of the emerging narrative that says the worst is over.

The good news is that energy prices have certainly fallen a lot in the past three months. Natural gas prices are down to around €135 ($141.14) per megawatt hour from a peak of €350 set in August. European electricity prices have more than halved in the same period. Plus, Europe has managed to build up its gas inventories nearly to the brim, and one of the warmest autumns on record reduced consumption significantly.

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