The following extract is taken from an overnight briefing I...

The following extract is taken from an overnight briefing I received. It really does look like China's need for additional energy is dire. In the short term coal may be the winner but with the country's long term clean energy goals the EXR gas across the border must be looking incredibly attractive....

As the northern hemisphere heads into its winter season, and with coal burning unfashionable these days, the pressure is on natural gas prices and supplies. In fact prices are already up +125% since the beginning of June and the sky seems to be the limit. Russia will be the main beneficiary in Europe. Australia will also be a huge beneficiary. China will also be paying the price of their relative energy deficiencies and inefficiencies.

In fact, the Chinese electricity crisis may turn out to be more important that the Evergrande crisis. High demand and soaring energy prices have forced some Chinese factories to shut down, adding further problems for already snarled global supply chains. And commodity prices are starting to show the impact of a sudden drying up of demand from Chinese buyers as their plants shut down. Nickel and bauxite are already feeling the squeeze. Coal may get a lifeline.