Another jump in oil and gas prices is raising fears of a difficult winter in the U.K., just one of the countries where households continue to grapple with the persistently high cost of living.
With crude oil above $100 a barrel and Europe heading into colder months with a thinner gas cushion than usual, concerns are mounting that energy-driven inflation could flare up again while war with Iran continues to impact fuel supply chains.
Here's what to know
In a short video on social media, Ed Conway of Sky News said higher oil, diesel, and wholesale gas costs were pointing to more inflation in the U.K. and beyond. He also asked why Europe had not done more to get ready for the coming winter months.
@skynews Secret shipments and desert pipelines have so far kept some oil flowing past Iran's reach - but that could be about to change Sky's Ed Conway explains
♬ original sound - Sky News
Conway unpacked why the picture might be bleaker than many think.
Gas prices in Europe are on the rise. Meanwhile, Conway noted that the continent's gas storage for early September is significantly lower than it has been in recent years. The Sky News analyst said the timing for this couldn't be worse.
"That's coming as we have this crisis in the Middle East, we have oil prices going up above $100 a barrel, and we have gas prices going up to the highest level since 2022," he said.
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Meanwhile, energy demand may be rising as winter approaches.
More background
Energy price spikes can affect heating bills, electricity costs, transportation, food distribution, and essential deliveries, all areas that face added pressure in the year's coldest months.
Conway had real questions about Europe's handling of the situation. As he posed, "People are going to reasonably ask: 'Why aren't we better prepared for this, and what does it mean for all of us in the coming months?'"
Commenters on social media were alarmed by the outlook, and many took issue with Conway suggesting that U.K. residents had just come through a cost-of-living crisis rather than still navigating an ongoing one.
"So once again, ordinary families will be expected to pay the price through higher gas, electricity, and food bills," one commenter observed. "How many more 'once-in-a-generation' cost-of-living crises are people supposed to survive?"
What's Being Done?
In its video caption, Sky News alluded to some more hastily arranged solutions from the past.
"Secret shipments and desert pipelines have so far kept some oil flowing past Iran's reach — but that could be about to change," it read.
One concern is that those sorts of remedies won't be available in the future, and the continent's gas storage will come under heavier pressure than it can withstand.
Weaning off reliance on fossil fuels is something much of the continent is trying to do.
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