Due to the ESG trend, investors who have spent years reducing their exposure to oil and gas reserves are now trying to return to fossil fuels. Reuters David Randall He wrote This week’s share of energy managers for the stock market rose 23 percent last month.
According to Randall, the energy storage rally surprised fund managers. This indicates that many believed that the ESG trend would continue to grow. This was a good reason for trillions of dollars worth of property management and other large institutional investments.
However, the harsh reality still seems to be in the future – and will return – in fossil fuels, especially as the Northern Hemisphere approaches winter. The current energy crisis has prompted calls for an urgent review of oil and gas demand and further investment in oil and gas production, with the exception of the International Energy Agency. Such investments are to achieve net-zero goals.
OPEC has been calling for more investment in oil and gas to fill the gap between supply and demand. In the meantime, it has been tightening its grip on production and limiting prices. As a result, the final fluctuations in oil prices and the role of oil have reaffirmed itself in the future of global energy integration.
Related to see the rapid economic growth of Middle East oil exporters in 2022 “I’m skeptical that energy prices will rise for a while because it will take some time to catch up on the supply chain,” Jack Janasiewicz, a strategic strategic strategist at Nactics Investment Portfolio, told Reuters.
Indeed, the container segment will be challenging because it, again, is based on OPEC and its desire to increase production. American manufacturers could have pumped in more, but their shareholders seem to have other priorities, such as the return of years of fruitless years of productive growth.
President Biden called on the US oil and gas industry to intervene and address the supply crisis, but according to industry insiders, Biden came to office with a clear anti-oil agenda and companies were reluctant to heed the call. Reported Earlier this month.
At a time of tight supply, crude oil is falling in the OECD and the US, further fueling oil prices and further fueling energy reserves. And while there are fears that the rally will end, the end is not yet in sight, prompting financial managers to change their strategy in recent years.
Related war for oil market sharing war in OPEC
Things can be even worse for oil bears. OPEC’s profitability is extremely high. DeclineIn the first quarter of this year, from 9 million BPD to 4 million BPD in the second quarter of 2022, Cartel increased its production to pre-epidemic levels, the IEA said in its latest monthly oil report.
Meanwhile, inflation is also supporting rising oil prices. Some people still believe that inflation is a temporary problem, while others are more cautious about rising demand for energy stocks and buying in the futures market.
With persistent supply chain problems, a shortage of manpower in the United States, and a shortage of energy in the short term, inflation can last for a while, raising oil and gas prices and rewarding the company’s stock. ESG investment trends are popular, but produce them.
By Irina Slav for Oilprice.com
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