In a worsening energy crisis in Europe, Germany is right at the center of a perfect storm as Russia cuts off supplies, nations scramble to ration natural gas, and plans for a new pipeline project loom.
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1. A perfect storm is brewing in Europe's energy market — and Germany is right in its path.
German baseload year-ahead power prices, the European benchmark, are up almost 500% from a year ago, Bloomberg data shows, as costs have climbed for nearly a week straight.
At the crux of the price jump is the surge in natural gas prices, which have spiraled higher as Russia has kept exports to Europe extremely minimal.
The country's top regulator already warned that Germany must dramatically pull back its gas usage to avoid a shortage this winter.
Over the past week, the continent's biggest economy has made a flurry of moves in response to Russia's energy "blackmail" against Europe, including pushing off the closure of its remaining three nuclear power plants.
Each was slated to shutter by 2023, but Russia's energy cut-offs have opened the door to an extension.
At the same time, Germany inked a deal with natural gas hubs to keep two terminals stocked through the winter ahead of any more potential cuts, Reuters reported.
Meanwhile, a German refinery partly owned by Moscow has started mixing US oil with Russian crude. About 20% of the Schwedt refinery's output is US crude, according to Bloomberg, which marks a pivot from before when it was solely reliant on supplies from Russia.
It's possible some relief may come from a new gas pipeline project that would connect the Iberian Peninsula to France.
Officials say it could be ready in nine months, and that it would boost Spain's gas export capacity by 30% — but Deutsche Bank doesn't seem to be betting on it.
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Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn).
Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.