Freezing weather in Asia sends energy prices soaring, catching markets off guard

Posted: January 11, 2021 by oldbrew in Energy, ENSO, Natural Variation, sea ice, Temperature, weather
Tags: ,

Chinese icebreaker


Had those markets fallen into a computer-modelled global warming stupor? If so, real world weather has brought a rude awakening, requiring urgent actions to get the means of heating to millions of shivering people.
– – –
China’s coldest winter in decades meant state-owned energy giant Sinopec was desperate to unload heating fuel from a vessel headed to a northern port, yet freezing temperatures that have swept parts of Asia froze a thick sheet of ice and blocked access, says Bloomberg.

With the help of an icebreaker ship and a cannon loaded with hot water, workers spent 20 hours clearing a pathway for the tanker to dock and discharge its cargo of liquefied natural gas in Tianjin.

The effort underscores how frigid temperatures have upended energy markets across Asia, catching some companies flat-footed and sending prices for electricity, fuel and vessels to record highs.

And with temperatures showing no signs of easing in key markets in Japan, China and South Korea, it could be weeks before any return to normality.

“This winter has definitely caught the market off-guard,” said Henning Gloystein, a director at Eurasia Group. “My hunch is that this spike will end with springtime.”

A La Nina weather phenomenon has sent a wave of cold air across North Asia this winter. Beijing last week recorded its lowest temperature since 1966, while Seoul had its coldest day since 1986, and record snowfall is sweeping across Japan’s west coast.

Continued here.

  1. Phoenix44 says:

    Mr Gloystein is clearly a genius.

  2. oldbrew says:

    Not normal…

    Snow accumulated in parts of Niigata prefecture is 10 times the level of a normal year, according to national broadcaster NHK.

  3. Gamecock says:

    ‘China’s coldest winter in decades’

    How do you say, “This is consistent with global warming” in Mandarin?

  4. oldbrew says:

    Diesel replacing coal…

    In parts of China where coal supply is particularly tight, the government has curtailed electricity to businesses to make sure there’s enough supply for home heating. That’s led to a surge in orders for portable generators and extra demand for the diesel that fuels them.

  5. JB says:

    director at Eurasia Group: “My hunch is that this spike will end with springtime.”

    No, really?

    This is the intellectual level of those driving the world economy?

  6. oldbrew says:

    Over in the West…

    Published 5 hours ago
    Texas sees rare heavy snowfall as winter storm sweeps through region

    “Up to 6 inches of snow fell today in our area,” tweeted the National Weather Service Austin/San Antonio on Sunday night. “The last time that happened was Christmas day 2004, when our Coastal Plains counties had a very white Christmas.”

  7. oldbrew says:

    A four-day-long spell of snowfall in Jammu and Kashmir — the heaviest since March 2005 — has cast a shadow on life in the Union territory. Reports of widespread damages have poured in from several parts, which also stand disconnected from the rest of the country.

    The Jammu-Srinagar highway, the only viable road that connects Kashmir with the country, reopened after seven days on January 10. Operations at Srinagar airport were also suspended.

    The unusually heavy snowfall has shone the spotlight on the climate crisis. Sonum Lotus, director, Jammu and Kashmir Meteorological Department, however claimed that snowfall in “some winters did not prove anything about the existence of climate change or its absence”. [bold added]
    – – –
    Equally, heatwave-related climate claims are irrelevant for exactly the same reason. But alarmists never admit that.

  8. Phil Salmon says:

    Judah Cohen’s AER blog predicts cold and snow for Northern Europe within a fortnight or so:

    (With caution appropriate to long term forecasts of course.)

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