The three major energy institutions have different views, the energy crisis dampens market confidence
Date:2021-10-18 origin:China Industry News Visit:14141
On October 15th, Jinlianchuang crude oil analyst Xi Jiarui said that the views of the IEA monthly report are obviously inconsistent with the views of OPEC and EIA on October 13th. However, regardless of the conclusion, the current consensus is that the European energy crisis is spreading. In the global market, not only natural gas, but also industries such as petroleum and petrochemicals, agricultural fertilizers, and electricity production, and even the economies of various countries will be affected.
The continuous recovery of the global economy has caused severe shortages of natural gas, liquefied natural gas and coal supplies, triggered a sharp rise in energy supply prices, and is triggering a large-scale switch to petroleum products and the direct use of crude oil for power generation, power plants, fertilizer producers, manufacturing operations, and refineries Are affected. The record coal and natural gas prices and rotating power outages are prompting the power industry and energy-intensive industries to switch to oil in order to maintain smooth power supply and operations. On October 14, WTI and Brent closed at US$81.31 and US$84.00 per barrel, respectively, setting the highest settlement prices since October 29, 2014 and October 9, 2018. "When the price of crude oil soars to more than US$80 per barrel, and the price of natural gas also sets a new record in history, this will stimulate the consumption of other fuels, especially fuels used for power generation." Xi Jiarui believes.
Xi Jiarui analyzed that due to supply chain issues and rising energy costs, it may eventually lead to a weak GDP outlook. The IEA said that price surges have swept across the entire global energy chain, and rising energy prices have also intensified inflationary pressures, coupled with power outages, which may lead to a decline in industrial activity and a slowdown in economic recovery. But what needs to be vigilant is that the decline in industrial activity and the slowdown in economic recovery will in turn restrict the energy industry, and energy and the economy are complementary.
At present, the market seems to generally believe that the oil market will remain tight in the next few months and oil prices will remain firm. Citibank predicts that oil prices may reach US$90 per barrel in the winter of 2021, and inventories may fall to a record low by the end of the year, and the fourth quarter Brent crude oil price is expected to rise to US$85 per barrel, saying that inventories may fall before the end of the year. To the lowest level on record. The Royal Bank of Canada raised its forecast for Brent crude oil prices in 2022, and raised its previous target of $75 for Brent oil prices in 2022 to $84 per barrel.
















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