Tuesday, 12 December 2017

Disruption prompts energy price surge just as cold snap bites

Oil and gas prices have surged after an explosion in Austria and disruption to supplies from the North Sea hit the energy market just as a cold snap drives up demand.
One person was killed and 18 injured at the blast in Baumgarten an der March, the site of one of Europe's biggest supply hubs, on Tuesday.
More than 200 firefighters attended the blaze and one witness described seeing an "immense ball of flame" at the site 31 miles northeast of Vienna, which has now been evacuated and shut down.

The blast prompted gas prices to surge across Europe, including a 40% rise in the UK to 95p per therm - a level not seen since 2013.

A spokesman for National Grid said there was sufficient gas to meet demand. The outage followed the closure of the Forties pipeline for repairs on Monday after a crack was discovered.

The pipeline, which carries 40% of North Sea oil and gas, is expected to be closed for a couple of weeks while repairs are carried out.

Analysts at Jefferies said: "The timing of the outage could not be much worse as winter weather is just materialising."

Oil prices also surged, with Brent crude pushing above $65 a barrel for the first time since June 2015 though it later slid back below $64.

SKY       News.