Europe’s Gas Price Cap Threatens to Intensify Energy Crisis
- LNG exporters may send fuel to Asia if prices are better
- Price ceiling without demand cap risks supply deficit: Goldman
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Europe’s move to cap natural gas prices threatens to curb supply to the region and intensify its energy crisis.
European nations this week reached a deal to put a ceiling on gas prices, ending months of political wrangling over whether to intervene in its energy sector. But while the mechanism may help prevent extreme price swings, it may leave the region vulnerable to insufficient supplies and stronger competition from Asia.