Bloomberg reports when will be an energy collapse in Europe

Energy supplies in Europe continues to rise in price, and it is time for the EU citizens to prepare for big shocks at the end of the year, writes Bloomberg analyst Xavier Blas.

Due to anti-Russian sanctions, the cost of oil, gas and coal in Europe is growing. Western politicians are so concerned about hydrocarbon prices that they have forgotten about electricity, Blas said.

If the result of the oil crisis is visible to economists immediately, then the consequences of the energy crisis will be felt later, but they will be shocking, the specialist is sure.

Now electricity futures are up 40%, the price exceeded December, although the cold has recently receded.

"Utilities buy electricity months in advance, and the current rise in the cost of futures contributes to a significant increase in retail prices by the end of the year," the expert warns.

Panic begins among the inhabitants of Europe because of future exorbitant electricity bills. The analyst is sure that at the end of autumn Europe will be overtaken by a real economic collapse due to the energy crisis.

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Author`s name: Petr Ernilin