The Week (April 16)
“The world is reeling from a war-induced oil shock, and China is poised to take advantage. The country builds nearly every component of the 21st-century electrical grid that will be needed to replace the oil currently bottled up in the Strait of Hormuz.” As the age of the petrostate fades, China looks set to become “the world’s first electrostate.”
Tags: 21st century, Advantage, China, Electrical grid, Electrostate, Oil, Oil shock, Petrostate, Poised, Reeling, Replace, Strait of Hormuz, War-induced, World
Investing.com (April 4)
Goldman Sachs thinks “China appears better placed than most major economies to withstand the ongoing oil shock triggered by Middle East tensions, with structural advantages in its energy mix, supply diversification and strategic reserves helping cushion the impact.”
Tags: China, Economies, Energy mix, Goldman Sachs, Middle East tensions, Oil shock, Strategic reserves, Structural advantages, Supply diversification, Withstand
New York Times (October 3)
“Markets are on edge about the risk of another oil shock. The price of crude has been relatively stable over the past year, apart from brief spikes.” Now, however, concern is focused on the potential “economic cost of a new war in the Middle East.” Estimates of the potential cost are wide-ranging and speculative, but “an escalation of fighting between Israel and Iran could cause oil prices to spike and send a chill through the global economy.”
Tags: Chill, Crude, Economic cost, Escalation, Fighting, Iran, Israel, Markets, Middle East, Oil prices, Oil shock, Risk, Speculative, Spikes, Stable, War
Investment Week (August 23)
In early August, the Bank of England predicted “increased gas prices would cause inflation to rise above 13% by the end of the year.” The consensus is worse. “Goldman Sachs and EY forecast UK consumer price inflation would reach 15%, and Bank of America projected it would peak at 14% in January.” Citi bank has gone further and “riled markets” by forecasting “UK CPI to hit 18.6% in January… beating the 1979 peak when CPI hit 17.8% following the OPEC oil shock.” A recession looks all but inevitable.
Tags: Bank of America, BOE, Citi bank, Consensus, CPI, EY, Forecast, Gas prices, Goldman Sachs, Inflation, Markets, Oil shock, OPEC, Peak, Recession, UK
