Global energy shortages threaten to develop into a full- bloated crisis with implications that stretch from Europe to China and US oil patch.
the scenes in the UK over the weekend reminded me of of the 1970s, such as drivers lined up by thousands of gas stations amid fears of a fuel shortage, fueled by a lack of truck drivers. But the panic at the pumps is really an afterthought. Natural gas prices in Europe and surroundings world have skyrocketed amid shortages, leading until higher household bills and suppliers collapse.
shortages of coal and natural gas, similar met the ones die to have hit Europe, are partially behind shortages of electric power in China. Strict emissions targets introduced by Beijing as part of an attempt to fight have climate change made excess of disaster. Local authorities should try to avoid exceeding energyuse limits even if the economy’s recovery of the Covid-19 pandemic adds until demand.
component suppliers Eson Precision Engineering (5243.Taiwan) and Unimicron technology (3037.Taiwan) both said on Sunday that they will cut production to met stop on Thursday.
China has pledged to cut energy intensity, a measure of the energy consumed per unit of economic growth, met 3% in 2021 to meet the climate targets.
The shortages have consequences for the household use, but the effect on industrial production has prompted analysts to lower their forecasts for economic growth. Nomura cut his call for full-year growth in China’s gross domestic product to 7.7% from 8.2%.
And the bank’s chief economist Lu Ting said it could be further reduced.
“Markets are now so baffled by the consequences” of the property sector that they can ignore Beijing’s unprecedented curbs on energy consumption and energy intensity”, according to the economist in An research Remark on Friday. “Beijing is unprecedented resolve in Enforcing energy consumption limits could: result in long-term benefits, but the short-term economic costs are significant,” he says added.
China International Capital Corp. said the deficits would lower the country growth rate met 0.1 to 0.15 percent points in the third and fourth quarters. If production cuts continue for the rest of the year, Morgan Stanley analysts see a 1 percentage point hit to GDP growth in the fourth quarter.
Meanwhile, oil prices and energy supplies gained ground on Monday. Brent, de global oil-price benchmark, rose $1.44 a barrel, of 1.8%, up to $79.53, for an upward move of 7.6% over five consecutive sessions of profits. West Texas Intermediate crude oil rose $1.47 a barrel, of 2%, up to $75.45, also marking a fifth straight win.
being elevated year-end raw Brent price forecast to $90 from $80, making the call on WTI to $87. Most notably, the banking analysts said that Hurricane Ida, die affected the oil production infrastructure, should prove to be “the most bullish hurricane” in U.S history.”
The global mismatch of demand relative to the supply is greater than the bank expected, it said with the recovery in demand follow the impact of run the Delta coronavirus variant impact out be faster than expected. Throw in the global gas shortage and winter oil demand is firmly skewed towards the top, they said.
share (ticker: XOM) won 2.9% on Monday, while
OXY) rose 7.9%.
The bigger question is of the energy problems and economic disruption die they are now expected to cause? trigger in China, will be more widely distributed. In each case, for all the talk of a green energy transition, the unfolding events show the economy is still very much powered by traditional fossil fuels.
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