There is not one story about Australian energy markets in the MSM today. Not one.
Yet we are days from a historic energy shock that will ruin everybody.
Perhaps the source of the nonchalance is the current state of the market. The gas price was $15Gj yesterday and electricity will only increase utility bills by 40% over the next year, adding 2.5% to CPI:
But, this is a false signal. Currently, one of the six LNG export trains on Curtis Island is shut for maintenance. The moment it reopens in a few days, the gas shortage will return and the cartel will attempt to bring unimginable international prices back into Australia.
The Japan/Korea Marker (JKM) yesterday drove towards $100Gj for the next year:
For the economic results, see Germany. It cannot get off gas fast enough:
Electricity prices are insane at $1000MW/h:
Inflation is off the hook and going to get worse, driving the ECB to aggressively tighten directly into recession:
This is exactly where our power prices will go if the gas cartel is allowed to act unrestrained. It will add 20% to CPI over a year and closer to 40% over two years. The RBA will be forced to hike rates far above anything that Australia’s household debt profile can handle and house prices crash by 75% as real income craters to 1990 levels.
Such a shock will be necessary if the economy is to accommodate the gigantic, war-profiteering, and criminal gas cartel.
This is a full-blown sovereign panic in global stationary energy fuel markets and everybody is going to freak out the worse that it gets. The longer that Albo’s cowards leave it to impose an export levy or domestic reservation to prevent catastrophe at home, the harder it will be to do as pressure mounts from allies to keep supply running at full tilt.
I just thought it might be worth a mention.
