A global energy crunch caused by weather conditions and a resurgence in demand is imminent, stirring alarms ahead of the winter when more energy is needed to heat and light homes.
In China, rolling power crunch have already begun, while in India, power plants are scrambling for coal. In Europe, natural gas now trades at the equivalent of $230 per barrel, up more than 130% since the beginning of September.
In East Asia, the cost of natural gas has gone up by as much as 85% since the beginning of September, hitting roughly $204 per barrel in oil terms.
Although, prices remain much lower in the United States, a net exporter of natural gas, energy prices have gone up to their highest levels in 13 years.
Governments around the world are trying to limit the impact on consumers, but many acknowledge that they may not be able to prevent bills from spiking.
The panic to secure natural gas is also pushing up the price of coal and oil, which can be used as substitutes in some cases.
The development is causing central banks and investors around the world grave concern.
Rising energy prices are contributing to inflation, which is already a major global concern as economies try to shake off the effects of the Covid-19 pandemic.