Another explosion spikes radiation levels

By Toronto Star


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Engineers struggle to regain control of JapanÂ’s Fukushima nuclear plant after another explosion and fire caused a spike in radiation levels.

Officials said 70 workers were at the complex, trying to cope with its myriad problems. The workers, all of them wearing protective gear, are being rotated in and out of the danger zone quickly to reduce their radiation exposure.

Kyodo news agency reported that radiation levels have become too high for personnel to remain in control rooms and led to the evacuation of another 800 staff from the plant.

The fires and explosions at the reactors have injured 15 workers and military personnel and exposed up to 190 people to elevated radiation.

“These are figures that potentially affect health. There is no mistake about that,” Chief Cabinet Secretary Yukio Edano told residents in the danger zone.

Japan's transport ministry says it has imposed a no-fly zone over a 20-mile 30-kilometre radius around the stricken Fukushima Daiichi nuclear power plant.

Ministry spokesman Hiroaki Katsuma said the decision was made because of fears that radioactive particles leaking from the complex into the atmosphere could enter passing aircraft.

The no-fly zone does not apply to helicopters that may be deployed to spray water over a reactor where a spent fuel storage pool is feared to be overheating.

Earlier, dangerous levels of radiation leaking from a crippled nuclear plant forced Japan to order 140,000 people to seal themselves indoors after an explosion and a fire dramatically escalated the crisis spawned by a deadly tsunami.

In a nationally televised statement, Prime Minister Naoto Kan said radiation had spread from the stricken reactors of the Fukushima Daiichi nuclear plant along Japan's northeastern coast. The region was shattered by the 9.0-magnitude earthquake and the ensuing tsunami that is believed to have killed more than 10,000 people, plunged millions into misery and pummeled the world's third-largest economy.

Japanese officials told the International Atomic Energy Agency IAEA that the reactor fire was in a fuel storage pond — an area where used nuclear fuel is kept cool — and that “radioactivity is being released directly into the atmosphere.” Long after the fire was extinguished, a Japanese official said the pool might still be boiling, though the reported levels of radiation had dropped dramatically by the end of the day.

That reactor, Unit 4, had been shut down before the quake for maintenance.

Nuclear officials say they may seek U.S. and Japanese military help to spray water from helicopters into an overheating spent fuel storage pool.

If the water boils, it could evaporate, exposing the rods. The fuel rods are encased in safety containers meant to prevent them from resuming nuclear reactions, nuclear officials said. But they acknowledged that there could have been damage to the containers. They also confirmed that the walls of the storage pool building were damaged.

Experts noted that much of the leaking radiation was apparently in steam from boiling water. It had not been emitted directly by fuel rods, which would be far more virulent, they said.

“It's not good, but I don't think it's a disaster,” said Steve Crossley, an Australia-based radiation physicist.

Even the highest detected rates were not automatically harmful for brief periods, he said.

“If you were to spend a significant amount of time — in the order of hours — that could be significant,” Crossley said.

Less clear were the results of the blast in Unit 2, near a suppression pool, which removes heat under a reactor vessel, said plant owner Tokyo Electric Power Co. The nuclear core was not damaged but the bottom of the surrounding container may have been, said Shigekazu Omukai, a spokesman for Japan's nuclear safety agency.

Though Kan and other officials urged calm, recent developments fuelled a growing panic in Japan and around the world amid widespread uncertainty over what would happen next. In the worst case scenario, one or more of the reactor cores would completely melt down, a disaster that could spew large amounts of radioactivity into the atmosphere.

“I worry a lot about fallout,” said Yuta Tadano, a 20-year-old pump technician at the Fukushima plant, who said he was in the complex when the quake hit.

“If we could see it, we could escape, but we can't,” he said, cradling his 4-month-old baby, Shoma, at an evacuation centre.

The radiation fears added to the catastrophe that has been unfolding in Japan, where at least 10,000 people are believed to have been killed and millions of people were facing a fifth night with little food, water or heating in near-freezing temperatures and snow as they dealt with the loss of homes and loved ones. Up to 450,000 people are in temporary shelters.

Officials have only been able to confirm a far lower toll — about 3,300 killed — but those who were involved in the 2004 Asian tsunami said there was no question more people died and warned that, like the earlier disaster, many thousands may never be found.

Asia's richest country hasn't seen such hardship since World War II. The stock market plunged for a second day and a spate of panic buying saw stores running out of necessities, raising government fears that hoarding may hurt the delivery of emergency food aid to those who really need it.

In a rare bit of good news, rescuers found two survivors in the rubble left by the tsunami that hit the northeast, including a 70-year-old woman whose house was tossed off its foundation.

The Fukushima Daiichi nuclear complex, along that battered coastline, has been the focus of the worries. Workers there have been desperately trying to use seawater to cool the fuel rods in the complex's three reactors, all of which lost their cooling ability after the quake and tsunami.

It is just recently that the complex was hit by its third explosion since March 11, and then a fire in a separate reactor.

Afterward, officials in Ibaraki, a neighbouring prefecture just south of the area, said up to 100 times the normal levels of radiation were detected. While those figures are worrying if there is prolonged exposure, they are far from fatal.

Tokyo reported slightly elevated radiation levels, but officials said the increase was too small to threaten the 39 million people in and around the capital, about 170 miles 270 kilometres away.

Amid concerns about radiation, Austria moved its embassy from Tokyo to Osaka.

Meanwhile, Air China and China Eastern Airlines cancelled flights to Tokyo and two cities in the disaster area. Germany's Lufthansa airlines is also diverting its two daily flights to Tokyo to other Japanese cities. None mentioned radiation concerns, instead giving no explanation or citing the airports' limited capacities.

Closer to the stricken nuclear complex, the streets in the coastal city of Soma were empty as the few residents who remained there heeded the government's warning to stay indoors.

Kan and other officials warned there is a danger of more leaks and told people living within 19 miles 30 kilometres of the Fukushima Daiichi complex to stay indoors to avoid exposure that could make people sick.

“Please do not go outside. Please stay indoors. Please close windows and make your homes airtight,” Chief Cabinet Secretary Yukio Edano told residents in the danger zone.

Weather forecasts for Fukushima were for snow and wind, blowing southwest toward Tokyo, then shifting and blowing east out to sea. That's important because it shows which direction a possible nuclear cloud might blow.

Some 70,000 people had already been evacuated from a 12-mile 20-kilometre radius from the Daiichi complex. About 140,000 remain in the new danger zone.

Temperatures in at least two of the complex's reactors, units 5 and 6, were also slightly elevated, Edano said.

“The power for cooling is not working well and the temperature is gradually rising, so it is necessary to control it,” he said.

Fourteen pumps have been brought in to get seawater into the other reactors. They are not yet pumping water into Unit 4 but are trying to figure out how to do that.

In Tokyo, slightly higher-than-normal radiation levels were detected but officials insisted there are no health dangers.

“The amount is extremely small, and it does not raise health concerns. It will not affect us,” Takayuki Fujiki, a Tokyo government official said.

Edano said the radiation readings had fallen significantly by the evening.

Japanese government officials are being rightly cautious, said Donald Olander, professor emeritus of nuclear engineering at University of California at Berkeley. He believed even the heavily elevated levels of radiation around Daiichi are “not a health hazard.” But without knowing specific dose levels, he said it was hard to make judgments.

“Right now it's worse than Three Mile Island,” Olander said. But it's nowhere near the levels released during Chernobyl.

On Three Mile Island, the radiation leak was held inside the containment shell — thick concrete armour around the reactor. The Chernobyl reactor had no shell and was also operational when the disaster struck. The Japanese reactors automatically shut down when the quake hit and are encased in containment shells.

The Daiichi plant is the most severely affected of three nuclear complexes that were declared emergencies after suffering damage in the quake and tsunami, raising questions about the safety of such plants in coastal areas near fault lines and adding to global jitters over the industry.

Meanwhile, France's ASN nuclear safety authority said the accident at the plant could now be classed as level six out of an international scale of one to seven.

Earlier, the ASN had rated the ongoing accident at the plant as a five or six.

Level seven was used only once, for Chernobyl in Ukraine in 1986. The 1979 accident at the Three Mile Island nuclear power plant in the United States was rated a level five.

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Electricity Prices Surge to Record as Europe Struggles to Keep Lights on

France Electricity Crisis drives record power prices as nuclear outages squeeze supply, forcing energy imports, fuel oil and coal generation, amid gas market shocks, weak wind output, and freezing weather straining the grid.

 

Key Points

A French power shortfall from nuclear outages, record prices, heavy imports, and oil-fired backup amid cold weather.

✅ EDF halted reactors; 10% capacity offline, 30% by January

✅ Imports surge; fuel oil and coal units dispatched

✅ Prices spike as gas reverses flow and wind output drops

 

Electricity prices surged to a fresh record as France scrambled to keep its lights on, sucking up supplies from the rest of Europe.

France, usually an exporter of power, is boosting electricity imports and even burning fuel oil, and has at times limited nuclear output due to high river temperatures during heatwaves. The crunch comes after Electricite de France SA said it would halt four reactors accounting for 10% of the nation’s nuclear capacity, straining power grids already facing cold weather. Six oil-fired units were turned on in France on Tuesday morning, according to a filing with Entsoe.

“It’s illustrating how severe it is when they’re actually starting to burn fuel oil and importing from all these countries,” said Fabian Ronningen, an analyst at Rystad Energy. The unexpected plant maintenance “is reflected in the market prices,” he said

Europe is facing an energy crisis, with utilities relying on coal and oil. Almost 30% of France’s nuclear capacity will be offline at the beginning of January, leaving the energy market at the mercy of the weather. To make matters worse, Germany is closing almost half of its nuclear capacity before the end of the year, as Europe loses nuclear power just when it really needs energy.

German power for delivery next year surged 10% to 278.50 euros a megawatt-hour, while the French contract for January added 9.5% to a record 700.60 euros. Prices also gained, under Europe’s marginal pricing system, as gas jumped after shipments from Russia via a key pipeline reversed direction, flowing eastward toward Poland instead.

Neighboring countries are boosting their exports to France this week to cover for lost nuclear output, with imports from Germany rising to highest level in at least four years. In the U.K., four coal power units were operating on Tuesday with as much as 1.5 gigawatts of hourly output being sent across the channel. 

The power crisis is so severe that the French government has asked EDF to restart some nuclear reactors earlier than planned amid outage risks for nuclear-powered France. Ecology Minister Barbara Pompili said last weekend that, in addition to the early reactor restarts and past river-temperature limits, the country had contracts with some companies in which they agreed to cut production during peak demand hours in exchange for payments from the government.

Higher energy prices threaten to derail Europe’s economic recovery just as the coronavirus omicron variety is spreading. Trafigura Group’s Nyrstar will pause production at its zinc smelter in France in the first week of January because of rising electricity prices. Norwegian fertilizer producer Yara International, which curbed output earlier this year, said it would continue to monitor the situation closely and curtail production where necessary.

Freezing weather this week is also sending short-term power prices surging as renewables can’t keep up, even though wind and solar overtook gas in the EU last year. German wind output plunged to a five-week low on Tuesday.

 

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Toshiba, Tohoku Electric Power and Iwatani start development of large H2 energy system

Fukushima Hydrogen Energy System leverages a 10,000 kW H2 production hub for grid balancing, demand response, and renewable integration, delivering hydrogen supply across Tohoku while supporting storage, forecasting, and flexible power management.

 

Key Points

A 10,000 kW H2 project in Namie for grid balancing, renewable integration, and regional hydrogen supply.

✅ 10,000 kW H2 production hub in Namie, Fukushima

✅ Balances renewable-heavy grids via demand response

✅ Supported by NEDO; partners Toshiba, Tohoku Electric, Iwatani

 

Toshiba Corporation, Tohoku Electric Power Co. and Iwatani Corporation have announced they will construct and operate a large-scale hydrogen (H2) energy system in Japan, based on a 10,000 kilowat class H2 production facility, which reflects advances in PEM hydrogen R&D worldwide.

The system, which will be built in Namie-Cho, Fukushima, will use H2 to offset grid loads and deliver H2 to locations in Tohoku and beyond, while complementary approaches like power-to-gas storage in Europe demonstrate broader storage options, and will seek to demonstrate the advantages of H2 as a solution in grid balancing and as a H2 gas supply.

The product has won a positive evaluation from Japan’s New Energy and Industrial Technology Development Organisation (NEDO), and its continued support for the transition to the technical demonstration phase. The practical effectiveness of the large-scale system will be determined by verification testing in financial year 2020, even as interest grows in nuclear beyond electricity for complementary services.

The main objectives of the partners are to promote expanded use of renewable energy in the electricity grid, including UK offshore wind investment by Japanese utilities, in order to balance supply and demand and process load management; and to realise a new control system that optimises H2 production and supply with demand forecasting for H2.

Hiroyuki Ota, General Manager of Toshiba’s Energy Systems and Solutions Company, said, “Through this project, Toshiba will continue to provide comprehensive H2 solutions, encompassing all processes from the production to utilisation of hydrogen.”

Manager of Tohoku Electric Power Co., Ltd, Mitsuhiro Matsumoto, added, “We will study how to use H2 energy systems to stabilize electricity grids with the aim of increasing the use of renewable energy and contributing to Fukushima.”

Moriyuki Fujimoto, General Manager of Iwatani Corporation, commented, “Iwatani considers that this project will contribute to the early establishment of a H2 economy that draws on our experience in the transportation, storage and supply of industrial H2, and the construction and operation of H2stations.”

Japan’s Ministry of Economy, Trade and Industry’s ‘Long-term Energy Supply and Demand Outlook’ targets increasing the share of renewable energy in Japan’s overall power generation mix from 10.7% in 2013 to 22-24% by 2030. Since output from renewable energy sources is intermittent and fluctuates widely with the weather and season, grid management requires another compensatory power source, as highlighted by a near-blackout event in Japan. The large hydrogen energy system is expected to provide a solution for grids with a high penetration of renewables.

 

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U.S. power companies face supply-chain crisis this summer

U.S. Power Grid Supply Shortages strain reliability as heat waves, hurricanes, and drought drive peak demand; transformer scarcity, gas constraints, and renewable delays raise outage risks across ERCOT and MISO, prompting FERC warnings.

 

Key Points

They are equipment and fuel constraints that, amid extreme weather and peak demand, elevate outage risks.

✅ Transformer shortages delay storm recovery and repairs.

✅ Record gas burn, low hydro tighten generation capacity.

✅ ERCOT and MISO warn of rolling outages in heat waves.

 

U.S. power companies are facing supply crunches amid the U.S. energy crisis that may hamper their ability to keep the lights on as the nation heads into the heat of summer and the peak hurricane season.

Extreme weather events such as storms, wildfires and drought are becoming more common in the United States. Consumer power use is expected to hit all-time highs this summer, reflecting unprecedented electricity demand across the Eastern U.S., which could strain electric grids at a time when federal agencies are warning the weather could pose reliability issues.

Utilities are warning of supply constraints for equipment, which could hamper efforts to restore power during outages. They are also having a tougher time rebuilding natural gas stockpiles for next winter, after the Texas power system failure highlighted cold-weather vulnerabilities, as power generators burn record amounts of gas following the shutdown of dozens of coal plants in recent years and extreme drought cuts hydropower supplies in many Western states.

"Increasingly frequent cold snaps, heat waves, drought and major storms continue to challenge the ability of our nation’s electric infrastructure to deliver reliable affordable energy to consumers," Richard Glick, chairman of the U.S. Federal Energy Regulatory Commission (FERC), said earlier this month.

Federal agencies responsible for power reliability like FERC have warned that grids in the western half of the country could face reliability issues this summer as consumers crank up air conditioners to escape the heat, with nationwide blackout risks not limited to Texas. read more

Some utilities have already experienced problems due to the heat. Texas' grid operator, the Electric Reliability Council of Texas (ERCOT), was forced to urge customers to conserve energy as the Texas power grid faced another crisis after several plants shut unexpectedly during an early heat wave in mid-May. read more

In mid-June, Ohio-based American Electric Power Co (AEP.O) imposed rolling outages during a heat wave after a storm damaged transmission lines and knocked out power to over 200,000 homes and businesses.

The U.S. Midwest faces the most severe risk because demand is rising while nuclear and coal power supplies have declined. read more

The Midcontinent Independent System Operator (MISO), which operates the grid from Minnesota to Louisiana, warned that parts of its coverage area are at increased risk of temporary outages to preserve the integrity of the grid.

Supply-chain issues have already delayed the construction of renewable energy projects across the country, and the aging U.S. grid is threatening progress on renewables and EVs. Those renewable delays coupled with tight power in the Midwest prompted Wisconsin's WEC Energy Group Inc (WEC.N) and Indiana's NiSource Inc (NI.N) to delay planned coal plant shutdowns in recent months.

BRACING FOR SUPPLY SHORTAGES
Utility operators are conserving their inventory of parts and equipment as they plan to prevent summer power outages during severe storms. Over the last several months, that means operators have been getting creative.

"We’re doing a lot more splicing, putting cables together, instead of laying new cable because we're trying to maintain our new cable for inventory when we need it," Nick Akins, chief executive of AEP, said at the CERAWeek energy conference in March.

Transformers, which often sit on top of electrical poles and convert high-voltage energy to the power used in homes, are in short supply.

New Jersey-based Public Service Enterprise Group Inc (PSEG) (PEG.N) Chief Executive Ralph Izzo told Reuters the company has had to look at alternate supply options for low voltage transformers.

"You don’t want to deplete your inventory because you don't know when that storm is coming, but you know it's coming," Izzo said.

Some utilities are facing waiting times of more than a year for transformer parts, the National Rural Electric Cooperative Association and the American Public Power Association told U.S. Energy Secretary Jennifer Granholm in a May letter.

Summer is just starting, but U.S. weather so far this year has already been about 21% warmer than the 30-year norm, according to data provider Refinitiv.

"If we have successive days of 100-degree-heat, those pole top transformers, they start popping like Rice Krispies, and we would not have the supply stack to replace them," Izzo said.

 

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Hydro One deal to buy Avista receives U.S. antitrust clearance

Hydro One-Avista Acquisition secures U.S. antitrust clearance under Hart-Scott-Rodino, pending approvals from state utility commissions, the FCC, and CFIUS, with prior FERC approval and shareholder vote supporting the cross-border utility merger.

 

Key Points

A $6.7B cross-border utility merger cleared under HSR, still awaiting state, FCC, and CFIUS approvals; FERC approved earlier.

✅ HSR waiting period expired; U.S. antitrust clearance obtained

✅ Approvals pending: state commissions, FCC, and CFIUS

✅ FERC and Avista shareholders have approved the transaction

 

Hydro One Ltd. says it has received antitrust clearance in the United States for its deal to acquire U.S. energy company Avista Corp., even as it sought to redesign customer bills in Ontario.

The Ontario-based utility says the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired Thursday night.

Hydro One announced the friendly deal to acquire Avista last summer, amid customer backlash in some service areas, in an agreement that valued the company at $6.7 billion.

The deal still requires several other approvals, including those from utility commissions in Washington, Idaho, Oregon, Montana and Alaska.

Analysts also warned of political risk for Hydro One during this period, reflecting concerns about provincial influence.

The U.S. Federal Communications Commission must also sign off on the transaction, and although U.S. regulators later rejected the $6.7B takeover following review, clearance is required by the Committee on Foreign Investment in the United States.

The agreement has received approval from the U.S. Federal Energy Regulatory Commission as well as Avista shareholders, and it mirrored other cross-border deals such as Algonquin Power's acquisition of Empire District that closed in the sector.

 

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Rolls-Royce expecting UK approval for mini nuclear reactor by mid-2024

Rolls-Royce SMR UK Approval underscores nuclear innovation as regulators review a 470 MW factory-built modular reactor, aiming for grid power by 2029 to boost energy security, cut fossil fuels, and accelerate decarbonization.

 

Key Points

UK regulatory clearance for Rolls-Royce's 470 MW modular reactor, targeting grid power by 2029 to support clean energy.

✅ UK design approval expected by mid 2024

✅ First 470 MW unit aims for grid power by 2029

✅ Modular, factory-built; est. £1.8b per 10-acre site

 

A Rolls-Royce (RR.L) design for a small modular nuclear reactor (SMR) will likely receive UK regulatory approval by mid-2024, reflecting progress seen in the US NRC safety evaluation for NuScale as a regulatory benchmark, and be able to produce grid power by 2029, Paul Stein, chairman of Rolls-Royce Small Modular Reactors.

The British government asked its nuclear regulator to start the approval process in March, in line with the UK's green industrial revolution agenda, having backed Rolls-Royce’s $546 million funding round in November to develop the country’s first SMR reactor.

Policymakers hope SMRs will help cut dependence on fossil fuels and lower carbon emissions, as projects like Ontario's first SMR move ahead in Canada, showing momentum.

Speaking to Reuters in an interview conducted virtually, Stein said the regulatory “process has been kicked off, amid broader moves such as a Canadian SMR initiative to coordinate development, and will likely be complete in the middle of 2024.

“We are trying to work with the UK Government, and others to get going now placing orders, echoing expansions like Darlington SMR plans in Ontario, so we can get power on grid by 2029.”

In the meantime, Rolls-Royce will start manufacturing parts of the design that are most unlikely to change, while advancing partnerships like a MoU with Exelon to support deployment, Stein added.

Each 470 megawatt (MW) SMR unit costs 1.8 billion pounds ($2.34 billion) and would be built on a 10-acre site, the size of around 10 football fields, though projects in New Brunswick SMR debate have prompted questions about costs and timelines.

Unlike traditional reactors, SMRs are cheaper and quicker to build and can also be deployed on ships and aircraft. Their “modular” format means they can be shipped by container from the factory and installed relatively quickly on any proposed site.

 

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European gas prices fall to pre-Ukraine war level

European Gas Prices hit pre-invasion lows as LNG inflows, EU storage gains, and softer oil markets ease the energy crisis, while recession risks, windfall taxes, and ExxonMobil's challenge shape demand and policy.

 

Key Points

European gas prices reflect supply, LNG inflows, storage, and policy, shaping energy costs for households and industry.

✅ Month-ahead hit €76.78/MWh, rebounding to €85.50/MWh.

✅ EU storage 83.2% filled; autumn peak exceeded 95%.

✅ Demand tempered by recession risks; LNG inflows offset Russian cuts.

 

European gas prices have dipped to a level last seen before Russia launched its invasion of Ukraine in February, after warmer weather across the continent eased concerns over shortages and as coal demand dropped across Europe during winter.

The month-ahead European gas future contract dropped as low as €76.78 per megawatt hour on Wednesday, the lowest level in 10 months, amid EU talks on gas price cap strategies that could shape markets, before closing higher at €83.70, according to Refinitiv, a data company.

The invasion roiled global energy markets, serving as a wake-up call to ditch fossil fuels for policymakers, and forced European countries, including industrial powerhouse Germany, to look for alternative suppliers to those funding the Kremlin. Europe had continued to rely on Russian gas even after its 2014 annexation of Crimea and support for separatists in eastern Ukraine.

On Tuesday 83.2% of EU gas storage was filled, data from industry body Gas Infrastructure Europe showed. The EU in May set a target of filling 80% of its gas storage capacity by the start of November to prepare for winter, and weighed emergency electricity measures to curb prices as needed. It hit that target in August, and by mid-November it had peaked at more than 95%.

Gas prices bounced further off the 10-month low on Thursday to reach €85.50 per megawatt hour.

Europe has several months of domestic heating demand ahead, and some industry bosses believe energy shortages could also be a problem next winter, with a worst energy nightmare still possible if supplies tighten. However, traders have also had to weigh the effects of recessions expected in several big European economies, which could dent energy demand.

UK gas prices have also dropped back from their highs earlier this year, and forecasts suggest UK energy bills to drop in April. The day-ahead gas price closed at 155p per therm on Wednesday, compared with 200p/therm at the start of 2022, and more than 500p/therm in August.

Europe’s response to the prospect of gas shortages also included campaigns to reduce energy use – a strategy belatedly adopted by the UK – and windfall taxes on energy companies to help raise revenues for governments, many of which have started expensive subsidies to cushion the impact of high energy prices for households and consumers. Energy companies have enjoyed huge profits at the expense of businesses and households this year, as EU inflation accelerated, but costs remained much the same.

However, the US oil company ExxonMobil on Wednesday launched a legal challenge against EU plans for a windfall tax on oil companies, according to filings by its German and Dutch subsidiaries at the European general court in Luxembourg. ExxonMobil argued that the windfall tax would be “counter-productive” because it said it would result in lower investment in fossil fuel extraction, and that the EU did not have the legal jurisdiction to impose it.

ExxonMobil’s move has prompted anger among European politicians. A message posted on the Twitter account of Paolo Gentiloni, the EU’s commissioner for the economy, on Thursday stated: “Fairness and solidarity, even for corporate giants. #Exxon.”

Oil prices are significantly lower than they were before the start of Russia’s invasion, and only marginally above where they were at the start of 2022. Brent crude oil futures traded at $100 a barrel on 28 February, but were at $81.84 on Thursday.

Oil prices dropped by 1.7% on Thursday. Prices had risen from 12-month lows in early December as traders hoped for increased demand from China after it relaxed its coronavirus restrictions. However, Covid-19 infection numbers are thought to have surged in the country, prompting the US to require travellers from China to show a negative test for the disease and tempering expectations for a rapid increase in oil demand.

 

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