OIES Podcast Series: Impact of Russia-Ukraine War on Energy Markets Series – 22
In the latest OIES podcast, the 22nd in the series on the impact of the Russian invasion of Ukraine on energy markets, James Henderson speaks to Alex Barnes about his latest research on the reaction of the European Commission to the energy crisis and to high gas prices. They discuss the latest proposals to impose a cap on the wholesale gas price in Europe and analyse whether it is workable in its current form or whether it is likely to be adjusted before being passed not law. They also consider the reactions of various member states to the proposal as there are a number of different views on whether a gas cap is a good idea in principle and whether the current proposal is satisfactory. Alex also reviews the proposal for a joint purchasing agreement for gas, explain the details around both procurement and demand allocation, while also reviewing the proposal for ACER, the European regulator, to create an LNG benchmark by March 2023. The discussion looks both at the short-term implications for prices in Europe but also considers the longer term implications for the structure of the European gas market overall.