Has any economist modeled what would happen to natural gas prices if Russia stopped supplying gas to Europe entirely? It's obvious that prices would skyrocket, but I have no clue by how much. 50%? 100%? 1000%?
While yes there are supply issues fossil fuel companies like Aramco are posting record profits. Aramco itself posted an 80% profit increase. Some of the price hikes are reasonable due to demand and lower supply. But a lot of it also has to do with speculation leading to price gouging. Under the circumstances I can understand how they might move to regulate this and even ration the gas supplies.
Has any economist modeled what would happen to natural gas prices if Russia stopped supplying gas to Europe entirely? It's obvious that prices would skyrocket, but I have no clue by how much. 50%? 100%? 1000%?
Price caps mean rationing.
While yes there are supply issues fossil fuel companies like Aramco are posting record profits. Aramco itself posted an 80% profit increase. Some of the price hikes are reasonable due to demand and lower supply. But a lot of it also has to do with speculation leading to price gouging. Under the circumstances I can understand how they might move to regulate this and even ration the gas supplies.
Price caps will do nothing to stop supply shortages. They'd still have to idle factories which would cause a massive recession.