Europe’s Energy Crisis Is a Warning Sign for the U.S., Citi’s Morse Says
(Bloomberg) -- The energy crisis roiling markets in Europe is a preview of what the U.S. will face over the next 10 years as it shifts to cleaner power sources, according to Ed Morse, Citigroup’s global head of commodities research.
“We are in the first crisis of the energy transition,” Morse said in an interview on Bloomberg Television. Switching away from fossil fuels is an “event that is going to be disruptive, dislodging and it’s going to create disharmony at home and internationally -- and it is also going to make superb advances.”
Extremely volatility has made European natural gas prices impossible to predict, Morse said. Prices soared to records in December, plunging later in the month after the rally lured a flotilla of U.S. gas tankers. The market has since rebounded as Russia curbs supplies.
©2022 Bloomberg L.P.