One month ago, we reported much to the shock of our European readers that in its assessment and preview of Germany’s staggering energy crisis brought on by Russian sanctions, Deutsche Bank predicted that “wood will be used for heating purposes where possible.”
You read that right: the largest European bank predicted that a growing number of German households will be using firewood for heating! Maybe allowing a petulant Scandinavian teenager to set the country’s energy policy was not the brightest idea after all.
So fast forwarding to today, when we find that European energy forward prices one year from today are now at staggering, record levels, implying one would need to part with at least an extra kidney to keep warm in the next year…
… it is no surprise that Deutsche Bank’s morbid forecast is gradually coming true and as Bloomberg’s Javier Blas shows in his “chart of the day”, that google searches for fireword (“Brennholz”) have exploded in the past couple of months now that electricity is no longer a staple, but a luxury few can afford.