(Energy Analytics Institute, 4.Feb.2022) — “Here we go again. With inflation currently at multi-decade highs and uncertainty surrounding the inflation outlook already unprecedented, the last thing the recovering global economy needs is another leg higher in energy prices,” HSBC Global Research executives wrote 4 February 2022 in a research report to clients.
“Yet that is what it is getting. And just as many of the retail gas price increases driven by last year’s wholesale price rises have found their way onto household energy bills, Russia/Ukraine tensions have pushed oil and gas prices higher and more hikes and further rises or even outright supply outages are possible. Should the tensions escalate, sanctions could be imposed, the impact of which could be more broad ranging, potentially extending to other commodities such as metals and foodstuffs, particularly wheat,” wrote Global Chief Economist Janet Henry and Economist James Pomeroy in their report.
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By Aaron Simonsky. © Energy Analytics Institute (EAI). All Rights Reserved.
