-
Right... major fail on my comprehension there.
And the price rises are just due to less sellers in the market, so less competition for the remaining right?
Polygon-
Good summary here: https://www.bbc.co.uk/news/explainers-62644537
It’s not just Russia limiting supplies, but this has been rising for the past year due to a variety of factors (end of lockdown and increase demand in Asia, low wind in Europe…). Russia limiting suppliers and EU embargoes/sanctions have made the global supply situation worse. It’s also worth mentioning that it’s similar to a stock market, and it’s traded partially on confidence. If confidence is low, price goes up even if supply volumes remain the same.
As Howard said, producers/extractors are having a field day as they can sell a thigh prices. Suppliers have to buy on the open market and as such are affected by the high prices with no reward. There are some suppliers that are also producers (EDF/BG/Shell) and then some suppliers that are just suppliers (Octopus, OVO)
C4r1s
I'm sure the govt. can get a cut of their negative profit, yeah
If they were Tesco, they'd be buying tins of soup for £5 then selling them on for £1.
It's the oil / gas producers making the big bucks (or, the producers of the aforementioned £5 tins of soup), as the price for their product has gone up due to demand caused by lack of supply, but the costs for producing it have stayed mostly static.