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On Tuesday, gas and oil prices increased in Europe due to the fact that concerns about the Omicron strain have eased, and the risks of new sanctions against a major energy supplier have increased.
In the morning, the world crude oil price surged by 5%, reporting to $ 73.42 a barrel, as negotiations on Iran's nuclear program turned out to be an obstacle. Accordingly, the probability of possible delays in the continuation of Iranian crude oil supplies increases.
The price of January natural gas in Europe also rose by 6.5% to 95.80 euros per kilowatt-hour under a Dutch contract traded through the ICE exchange.
The growth in wholesale energy prices indicates that heating, lighting, and electricity costs for Irish businesses will fall again this winter in Ireland.
Natural gas is especially important in Ireland and throughout Europe for generating electricity at power plants, especially under these conditions of acute energy shortage even before the onset of winter.
Ironically, the improvement in economic indicators last week did little to optimize the prospects for even higher Irish energy bills for businesses and households for the current winter. A higher level of global economic activity is stimulating demand for global fuel and has contributed to recent price increases.
Another indicator of high demand is that Saudi Arabia raised oil prices on Sunday. This happened after OPEC+ agreed to continue increasing production.
At the same time, the West is threatening to impose sanctions on the Nord Stream 2 gas pipeline and strengthen NATO's eastern flank, including cutting Russia off from the Swift payment system, said Latvia on Tuesday.
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