The globe is being gripped by a mounting energy crisis. It is being sold by Wall Street as the fruits of decarbonisation and ESG policies, to pump up a bubble. But it appears more a combination of temporary factors for both demand and supply that will take time to resolve but is not structural.
The main three factors are:
- Europe is short of gas owing to weak Russian supply.
- China is short of coal owing to booming industrial recovery and hot weather plus supply disruptions.
- The US is drawing its oil inventories as local shalers respond more slowly this cycle and OPEC prioritises other markets to manipulate prices.
