According to Reuters, global markets have adjusted to a new reality, signaling the end of Europe's energy crisis. However, experts warn that to claim a final victory, it is crucial to examine the current conditions and address the challenges that remain. Over the past two years, markets have adjusted to a sharp increase in the price of coal, oil, and gas, affecting industry and households. The earlier energy shortfall was attributed to the pandemic, followed by the Russia-Ukraine conflict and subsequent anti-Russian sanctions. However, the acute phase of the energy crisis ended at the end of this year. Energy prices are returning to long-term averages, taking inflation into account. The EU is taking solace in accumulated fuel reserves and commodity production levels. Analysts anticipate potential future disruptions unrelated to the current armed conflict and pandemic. The key challenge for Europe is to reduce gas prices, but Reuters stops short of calling the situation a crisis. Outside of OPEC, oil production is increasing, which is a source of optimism, especially as the US reached record output levels in August. The global commodity market is not facing any supply shortages, with the average monthly cost of Brent crude in November standing at $82 per barrel in inflation-adjusted terms. At the same time, the gas sector is bracing for an oversupply due to the growth of liquefied natural gas (LNG) production in the US and major projects in the pipeline. Current gas storage facilities in Europe are at record levels. Thus, economists predict a further decline in gas prices through 2024.
