FX RATES
FX RATES

Energy Crisis May Trigger Social Unrest

 

The global energy crisis continues to lead to an increase in price of crude oil, Creating price imbalance in the oil market.

Stephen Schwarzman the co founder of black stone said the world is facing energy shortages so severe they could cause social unrest.

He stated that “We’re going to end up with a real shortage of energy,” he said at a conference in Saudi Arabia. “And when you have a shortage it’s just going to cost more and it’s probably going to cost a lot more. And when that happens you’re going to get very unhappy people around the world, in the emerging markets in particular.”

The market for commodities especially oil and natural gas have experienced commodity price shock with the main catalyst being the covid 19 pandemic.

The price of Brent crude is currently above $85 per barrel. Meanwhile, natural gas in china and European countries have all increased.

Commodity price imbalance have resulted into drastic suggestions such as  a draw up in exportation of gas within European countries.

 

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