BusinessUSA

Jamie Dimon warns Europe’s energy crisis will get worse and last for years

[ad_1]

  • Europe’s energy crisis will deepen and last for years, JPMorgan CEO Jamie Dimon has warned.
  • Russia cut its natural gas supplies from the continent this summer, causing electricity prices to spike.
  • Alternatives to Russian gas and oil are scarce and global demand is high, creating problems for energy-strapped Europe.

Europe’s energy crisis will worsen and could last for years, according to JPMorgan CEO Jamie Dimon.

“It’s as bad as it gets,” Dimon said of the energy crisis in an interview with CBS’s Face the Nation on Sunday. “And that may go on for years. But this oil and gas thing – it looks like the Europeans will get through this winter – but this oil and gas thing is going to go on for years.”

Europe has been threatened with a looming energy crisis since Russia cut natural gas flows to the continent this summer amid Western sanctions for its invasion of Ukraine. The shortage of natural gas caused electricity prices in Europe to skyrocket more than 1000% above normal levels earlier this year, and sparked a desperate rush for alternative energy sources, including including the burning of coal and garbage as fuel.

Europe also faces stiff competition in the spot market from Asian natural gas customers, particularly as China increases its energy demand as the country emerges from COVID-19 shutdowns. This is expected to put increased pressure on supply, driving up natural gas prices, the International Energy Agency has warned.

Oil supplies are also under pressure after the EU imposed its ban on Russian oil flows by sea, which began in full on December 5. The bloc also imposed a $60 price cap on Russian crude.

But alternatives in the market are dwindling: the U.S. Strategic Petroleum Reserve is ending additional deliveries this month, and OPEC+ has announced it is sticking to a planned production cut of 2 million barrels per day.

“If I was in government or anywhere else, I would say, ‘I have to be prepared for this to get worse. “Hopefully it won’t, I would definitely prepare for it to get worse,” Dimon warned.

[ad_2]

businessinsider

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button