....more bullish news for the demand side on O&G
Extreme Weather Exacerbates Strained Global Energy Market Environment, ANZ Bank Says
05:33 AM EDT, 07/22/2022 (MT Newswires) -- Extreme weather across the globe has caused electricity demand to surge to record highs, amid a strained global energy market due to oil and gas disruptions, Australia's ANZ Bank said in a Friday note.
Due to energy shortages, the amount of coal-generated electricity is set to grow in 2022 as countries such as Japan, India and China encourage coal production to stave off winter shortages, the bank noted. European authorities are also restarting coal-fired power plants as the continent anticipates further disruptions to Russian gas supplies.
Higher gas and liquefied natural gas prices are also encouraging a switch to coal. This is part of the impact of Russia's invasion of Ukraine, which has created fuel shortages as sanctions isolate Russian energy exporters, ANZ Bank said.
As a result, the market is already straining to meet the economic rebound in 2021 following the height of pandemic lockdowns, the bank said.