MOSCOW, 7 Sep — PRIME. The cessation of Russian gas supplies this winter will destroy the European economy, especially Germany, Sal Gilberti wrote in an article for Forbes magazine.
If futures markets continue to trend, he said, gas prices will almost double this year compared to last year, meaning northern hemisphere residents are about to face a massive increase in winter heating bills.
The author clarified that the Americans will not face the massive price increase that has already affected Europe. The United States is the world’s largest producer of natural gas, and its domestic reserves, while below the five-year average, are more than adequate, he said.
Germany, on the other hand, is facing the opposite problem – “it’s a pattern of dependence on natural gas, and now Russia holds all the cards,” Gilberti said. The implications of this will be huge because Germany’s economy is the largest in Europe and the fourth largest in the world, and its fate will determine the fate of the European and world economy this winter, he stressed.
“Consumers in the Northern Hemisphere will face an expensive and, in the case of Europe, possibly a cold and dangerous winter season this year,” the journalist predicts. At the same time, he said, Americans should also be prepared for much higher winter heating bills than last year and plan their spending accordingly.