Commentary
Think energy prices are high? It could be a short-term low.
The global economy is interconnected, with China stumbling about near its center. Nothing proves this better than the interrelation of global gas prices and China shooting its own economy in the foot through regional COVID lockdowns that persist, month after month.
Gas prices are higher than average due to Russia’s invasion of Ukraine and the resulting sanctions and counter-sanctions. But China’s locked-down economy diminishes the demand for energy. That could change quickly if Xi Jinping unlocks China’s economy after the upcoming Chinese Communist Party (CCP) congress, which would increase global energy prices. He has every incentive to do so, as once he has that third term, he has less reason to stick to his failed “zero-COVID” policy….