Reuters reports from Beijing, Moscow, and Prague.
More pain for global supply chains is expected as a result of power cuts in China, while Russia’s Gazprom (MCX:GAZP) has shown no signs of increasing shipments to Europe so far this year.

Since the beginning of the COVID-19 epidemic, the price of coal has risen sharply, creating inflationary pressures and jeopardizing the world economy’s ability to recover.

In advance of the COP26 summit climate talks beginning on October 31 world leaders are under pressure to sketch out strategies to wean their economies off fossil fuels in light of the red-hot market.

European gas prices have risen by more than 350% this year, thanks to Russia providing 35 percent of the continent’s gas needs.
As a result, several European enterprises that provide gas or electricity to homes and businesses have gone out of business.

An energy regulator in the Czech Republic went above and above by requesting suppliers to offer guarantees that they can deliver energy to homes and businesses after one of the country’s power and gas organizations suspended supply.

There have already been a dozen or more collapses in the UK supply chain.

Asia’s Ohm Energy, the third supplier to do so recently, announced it was exiting Singapore’s retail energy sector.

Russia has stated its willingness to supply Europe with additional gas.
However, Gazprom, the Russian gas pipeline export monopoly, has made no moves to reserve more capacity.

Gazprom secured nearly a third of the additional gas transit capacity available for the Yamal-Europe pipeline via Poland in November, according to auction results released on Monday. However, no volumes were secured via Ukraine.

Politicians in Europe accuse Russia of using the squeeze as a negotiating chip to get the Nord Stream 2 gas pipeline from Russia to Germany up and running, even though licenses are still months away.
There have been no demands for additional gas from Gazprom or the Kremlin, according to their statements.

DISRUPTIONS

The most polluting fossil fuel, coal, is in limited supply in China, where 60 percent of the country’s power plants run on it. This has led to blackouts in industries and households as a result.

Constrained by these issues, the economy increased by just 4.9% in the third quarter, the weakest expansion since 2020’s third quarter.

A slew of policies aimed at increasing coal supplies have yet to take effect.
According to government figures cited by Reuters, China produced 11.14 million tonnes of coal on a daily average in September.
In the past week, China’s output was reported to be 11.2 million metric tons, which means it scarcely changed.

According to Wood Mackenzie’s Asia Pacific power and renewables research head Alex Whitworth, the Chinese government is losing the struggle to control rising coal prices.

All fossil fuel providers are striving to keep up with the worldwide recovery from the depths of the pandemic-induced downturn.

Oil prices have risen by more than 60% this year, to over $85 per barrel on Monday, as members of the OPEC+ oil producing coalition have struggled to pump as much as their newest output agreement permits.
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The energy price hike is hitting European businesses hard, and it’s only going to get worse as supply of memory chips and shipping containers tightens up.

Philips CEO Frans van Houten remarked, “Supply chain instability has risen internationally.” Philips lowered its 2021 forecast.
“This headwind is expected to persist in the fourth quarter,” says the company.

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