Europe's Energy Crisis Eases After Painful Period of Adjustment
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Europe's energy crisis from mid-2021 to late 2022 has passed its peak, with supplies now comfortable and prices reverting to averages. However, Europe still relies heavily on expensive LNG imports which threatens industrial competitiveness.
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Oil markets have adjusted through increased U.S. production and OPEC+ output cuts. Prices and inventories are now at moderate levels.
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Gas markets in Europe adjusted due to warmer weather and industrial slowdown. Prices, while still elevated, have fallen substantially from 2022 highs.
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Coal markets eased as China increased domestic production and global renewable generation grew rapidly. Prices have fallen from record highs in 2022.
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After extremely painful adjustment in 2021-2022, production, consumption and inventories have reached more sustainable levels across energy markets by end of 2023.