Globally, energy shortages are about to plunge into a full-blown crisis in Europe and China and the United States.
Weekends in the UK were reminiscent of the 1970s, with thousands of trucks lined up in the throes of heavy trucks. But the panic on the pumps is really a side view. Natural gas prices in Europe and around the world have skyrocketed, leading to a sharp drop in housing prices and supply.
The same shortage of coal and natural gas that hit Europe was partly due to China’s power shortage. Severe emissions by Beijing, part of a campaign to combat climate change, have made matters worse. Even when the economy needs to recover from the VV-19 epidemic, local authorities should try to avoid using energy restrictions.
Power is so scarce that many manufacturers of Ticker AAPL and Tesla (TSLA) have stopped production.
Parts suppliers Essen Engineering (5243. Taiwan) and Unimronron Technology (3037. Taiwan) will both stop production on Sunday until Thursday.
China has pledged to reduce its energy consumption by 3% by 2021 to achieve climate change goals.
The shortage has begun to affect household consumption, but the impact on industrial production has prompted analysts to lower their forecasts for economic growth. Numera’s call for full-year growth in China’s GDP fell 7.7% to 8.2%.
And the bank’s chief economist, Lu Ting, said this could further reduce the situation.
“Markets are now very confused by the recession,” the Economist said in a research note on Friday. An unprecedented decision to implement Beijing’s energy consumption limits could have long-term benefits, but short-term economic costs are significant. ”
China International Capital Corporation said the shortfall will slow the country’s growth rate by 0.1 to 0.15 percent in the third and fourth quarters. Morgan Stanley analysts hit a 1-point point in GDP growth in the fourth quarter after the decline continued for the rest of the year.
Meanwhile, oil prices and energy stocks gained ground on Monday. Brent, the global oil price index, rose $ 1.44 per barrel or $ 1.8% to $ 79.53 to rise 7.6% on five consecutive gains. West Texas Intermediate crude rose $ 1.47 per barrel or 2% to $ 75.45, and a fifth straight profit.
At the end of the year, Brent increased his forecast from $ 90 to $ 90, raising his call on WTI to $ 87. Analysts, in particular, said that Ida, the hurricane that hit the oil production infrastructure, must be “the largest hurricane in American history.”
He said demand recovery was faster than expected due to the changing effects of the Delta Coronavirus. He said global gas shortages and demand for winter oil had risen sharply.
Shares (XOM) gained 2.9% on Monday
OXY) collected 7.9%.
The big question is whether energy issues, and now the economic downturn in China, are more widespread? In any case, the talk of green energy transformation shows that the economy is still supported by traditional fossil fuels.
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