Energy Crisis?

With Europe in the grip of an exceptionally cold winter and energy disruptions and disputes raging in parts of Eastern Europe energy supply and prices is a hot topic at the moment. The question on the lips of most people in the world of finance right now is how bad is it going to get? Its very worrying that major players such as George Soros are making quite dire predictions but I really hope it doesn’t get this bad.

Our woes do not end there. According to a report in Petroleum Intelligence Weekly internal Kuwaiti records have revised the national oil reserve from the official 99 billion barrels to 48 billion barrels, a reduction of about 50%. To put that into context that is a reduction of 5% in the world oil reserve and equivalent to 20 months global consumption. The markets aren’t going to like that either.