A pair of new analyses add perspective to a picture familiar to Generate readers: China is the straw that stirs the drink of global energy markets, Ben writes.
- A Center for Strategic and International Studies analysis finds that “global energy prices hinge on China’s economic recovery.”
- The country’s reopening from COVID restrictions will boost oil and natural gas demand there.
The intrigue: One thing to watch is the ripple effect on European access to LNG to replace Russian gas.
- CSIS notes that weak Chinese demand last year freed up cargoes for EU markets.
- “If there is a sharp [economic] recovery this year, the oil and LNG markets will tighten, reviving energy security concerns in Europe and elsewhere.”
Yes, but: CSIS highlights a number of question marks around China’s recovery and energy mix, so the “new normal” on its oil and gas demand is unclear.
