Energy Traders Lobby for Funds to Avoid Liquidity Crisis
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Cooling towers at a lignite-fired power station in Lippendorf, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Europe’s energy traders are lobbying central banks and governments for urgent funding as the industry faces cash-calls running into the billions of dollars due to soaring commodity prices.
The European Federation of Energy Traders is petitioning for “emergency funding mechanisms” in order to prevent some traders from experiencing liquidity problems that could lead to financial contagion, according to a letter viewed by Bloomberg. Members of the industry group include Shell Plc, TotalEnergies SE, Vitol Group and Mercuria Energy Group Ltd. among others.