The Energy Crisis is Officially Worse Than Covid.

Energy Prices (Daily Change)

All prices updated at end of day using CME settlements.

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The UK has been hogging headlines as of late with everything from soaring gas and electricity prices to the search for a new Prime Minister.

The conservative Liz Truss has taken the PM spot in an interim election following Boris Johnson’s exit only to immediately unleash the “largest welfare programme in the UK’s recent history”.

+Liz Truss takes office with vow to steer Britain out of energy storm – FT

There is some question among economists and speculators as to whether this intervention does anything to encourage consumers to curtail energy demand, but perhaps that part of the economic equation is taking care of itself.

+Europe’s top aluminum plant will cut output 22% on energy costs – Bloomberg

Speaking of demand, anyone want a few quid?

Macro Energy

Energy futures markets continue to be thinly traded and volatile.

+Energy trading stressed by margin calls of $1.5 trillion – Bloomberg

+Europe can – and must – win the energy war – FT

+EU plans windfall taxes to counter ‘astronomic’ energy bills – FT

Macro Economy

+A slowing China helps rein in inflation around the world – WSJ

+The bad news for the pound is not all in the price – FT

+Treasury 30-year yield rises to highest level since 2014 – Bloomberg

Energy Transition

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+Three myths about the global energy crisis – FT

+Manchin’s plan to fast-track energy projects headed for showdown – Bloomberg

+US LNG export capacity to grow as three additional projects begin construction – EIA

Other News

+Volkswagen to list Porsche in one of biggest IPOs in years – WSJ