Energy Prices

Not sure it is getting enough attention but the European energy market is in a full blown crisis. U.K. ngas for example is trading at a price over $400/mmbtu vs us sub $4. This is equivalent of an oil price of $340/bbl, global oil price is $70/bbl. The base load power contracts are in similarly many multiples of previous highs. Far East lng is also over 27 vs 5 last year. What are the implications of this? Firstly I would say pretty bullish oil, GS think there is Europe’s and Asian ngas to oil switching of around 1.8 million bbls. Second and more importantly it is going to get a lot more expensive to make anything apart from in the US.