The 2022 energy crisis is having a serious effect on every part of the world. It began in 2021 while the COVID lockdowns were in full swing and much private industry was shut down or vastly restricted. Now, there has been a recent spate of shortages in sectors like electricity generation, gas exploration, oil markets, and others.

Europe is the center of the pain point right now, but no geographic region is immune. China, Germany, and the UK are suffering the worst as 2022 comes to a close. The following details are of use to all traders and investors who want to stay on top of pertinent news and financial events.

Europe and the US

While France can rely on its significant nuclear power capacity, all other members of the EU, as well as the UK, cannot. Nor can any of those nations look to renewables for comfort. Green resources aren’t near the point where they can contribute to resolving the problems at hand.

As winter begins, it’s likely that energy-related commodity prices will continue to rise in Europe, shortages will get worse, and many national currencies will suffer as a result. There’s no doubt that the hostilities between the EU and Russia are the primary culprit. There’s a time delayed effect for US markets, as Americans have access to a large petroleum reserve that could last as long as several months.

GCC Countries Call the Shots

The Gulf Cooperation Council holds a lot of power as Europe no longer has access to Russian commodities. But relying on the inner circle of the oil producers has its limits because members of the Council are currently sending the bulk of their output to Asian buyers. It would be nearly impossible for them to divert enough oil to Europe to make a difference for the upcoming winter shortfalls.

The Council consists of some of the world’s major petrol rich countries, including Saudi Arabia, Oman, Qatar, Kuwait, Bahrain, and the United Arab Emirates. In fact, Kuwait enjoys the distinction of having the most expensive currency on earth, with Bahrain and Oman in second and third place. That gives the group significant economic strength compared to its competitors in the industry.


It’s important for all trading enthusiasts to understand the relationship between GCC and OPEC (Organization for Petroleum Exporting Countries). The Gulf Cooperating Countries are the leaders of the OPEC cartel in both financial strength and production.

Big banks in the GCC’s member nations are what help countries like Saudi Arabia, Kuwait, and a few others run the show within the larger organization, OPEC. In the Middle East’s petrol industry, it’s nearly impossible to separate the influence and power of the banks, petroleum producers, and national governments.

Africa is Not Immune

No geographic location, city, nation, or continent is immune to the ripple effect of the crisis. In countries like Cameroon, Nigeria, Kenya, Ethiopia, Sierra Leone, and elsewhere on the African continent, shortages of fuel-related commodities are becoming commonplace.

Stations for retail consumers typically run out of all supply and begin setting up rationing programs. The government of Cameroon spent huge amounts of money subsidizing the industry in order to squeeze out more gasoline and diesel, but that wasn’t enough.

It’s bad enough when no one can fill their car, truck, or tractor tanks, but local food shortages make the crisis worse. Already, the Ethiopian authorities stopped all subsidies but had to watch in horror as the pump price of diesel skyrocketed by nearly 40% in the aftermath.

Ethiopians now expect to wait more than seven hours just to fill up their tanks. Long lines for fill-ups, enforced rationing, riots, protests, and scarcities are all part of the scene in Africa, which in some ways, is taking the brunt of energy-related economic difficulties around the world.

Protests Erupting in South America

The global energy-related crisis is a truly international phenomenon. Riots are happening in South America as a direct result of rising prices for fuel, fuel oil, and all petroleum products.

In Ecuador, the country’s transport union workers protested in the streets, while students and working people also took part in rallies and protests all across the nation. The same thing happened in Panama, where thousands marched to attract attention to inflated fuel pricing.

In Peru, it was also about fertilizer, a derivative of petroleum. Recent public demonstrations in Lima and elsewhere resulted in many injuries and a few deaths.

The Peru situation erupted immediately after Russia invaded Ukraine. As effects of the COVID lockdowns linger, fuel shortages in multiple South American nations are leading to massive protests in metropolitan areas.