Government Holds Weekly Review Meetings Amid Energy Crisis Concerns..."Price Increase Until February Next Year"

[Sejong=Asia Economy Reporter Kwon Haeyoung] As the government faces a rising crisis of an 'energy crisis' due to the recent surge in international energy prices, it has decided to hold weekly meetings to monitor supply and demand. The upward trend in international energy prices such as crude oil and natural gas is expected to continue until February next year.

On the 14th, the Ministry of Trade, Industry and Energy held the first meeting of the 'Energy and Resource Supply Management TF' chaired by Vice Minister Park Ki-young at the Korea Trade Insurance Corporation in Jongno-gu, Seoul.

The TF is tasked with checking the supply and demand status and response measures for energy and resources such as oil, gas, and coal to stabilize domestic supply amid the recent rise in international energy prices. Energy public enterprises, private companies, and academia participate, and during the upcoming winter season, meetings will be held weekly.

According to the Ministry of Trade, Industry and Energy, the Northeast Asia spot price (JKM), an indicator of natural gas prices, rose to $56.3 per 1 million BTU (British Thermal Units) on the 6th, marking an all-time high. Compared to $5.2 a year ago, this is a more than tenfold increase. This was analyzed as a combined effect of increased gas power demand in Europe and China, supply constraints from Russia, and production disruptions caused by hurricanes in the United States.

Coal reached $247 per ton on the 6th, the highest in the past five years, influenced by reduced investment and production due to the carbon neutrality policy and increased coal-fired power generation due to rising gas prices. Crude oil prices (WTI) also rose to $80.5 per barrel on the 11th, the highest in seven years, due to economic recovery and increased oil demand.

Major global forecasting agencies predict that the upward trend in international energy prices will continue until February next year, when energy demand for electricity and heating is high. The prevailing forecast is that gas prices will remain at a high level in the $40 range until early next year. Citigroup predicted that if China's high demand and Europe's inventory shortages persist, prices could rise to $100. International oil prices are also expected to remain high in the $70 per barrel range, and coal prices around $220 per ton.

However, the domestic energy and resource supply situation remains stable. Crude oil is being imported steadily at 80 million barrels per month, and the purchase of this year's stockpile target (255,000 barrels) has been completed, securing a total volume of 100 million barrels. As of August, the government and private sector hold stockpiles sufficient for 205 days. Coal for power generation has secured more than 100% of the required volume until the end of this year, and natural gas supply has not faced significant difficulties so far, based on long-term contracts by the Korea Gas Corporation.

Vice Minister Park Ki-young said, "Although domestic energy supply remains stable, the continued rise in energy prices increases uncertainty in the international energy market, so we must not let our guard down. Please monitor international energy market trends in real time and thoroughly check domestic supply, stockpile status, and emergency response systems."

This content was produced with the assistance of AI translation services.