Energy leaders urge governments and central banks for emergency assistance
European energy leaders are pleading with governments and central banks to provide emergency assistance to prevent a cash crunch – with commodity markets strained by soaring prices following Russia’s invasion of Ukraine.
The European Federation of Energy Traders, a trade body which includes BP, Shell, Vitol and Trafigura, has called for “time-limited emergency liquidity support to ensure that wholesale gas and power markets continued to function” in a letter seen by The Financial Times.
The trade body argued that a challenging situation has worsened, meaning more energy participants are in a position where their ability to source additional liquidity is “severely reduced or, in some cases, exhausted.”
Oil prices skyrocketed to 14-year highs earlier this month, while gas prices peaked at eye-watering £8 per therm.
Meanwhile, rallies in aluminium, copper and lithium have been accompanied by the London Metal Exchange being forced to suspend nickel trading after prices spiked to over $100,000 per tonne .