China’s Return, Price Ceiling Are Two Challenges to Global Energy Market Balance

In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)
In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)
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China’s Return, Price Ceiling Are Two Challenges to Global Energy Market Balance

In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)
In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)

Cornelia Meyer, macro-economist and energy expert, said the reopening of China following the zero-Covid-19 policy and the price ceilings imposed on the purchase of energy products from Russia will pose challenges to the balance of the global energy market.

She also expected the demand for gas to grow one percent this year, while the supply to increase to less than one percent.

In an interview with Asharq Al-Awsat, Meyer said the shrinking demand for gas in Europe was a result of the war in Ukraine, as European countries sought to curb their reliance on Russian gas.

This will inevitably increase the demand for the liquefied natural gas (LNG), which will lead to a rise in the cost of LNG shipments and an increase in gas prices in Europe and around the world, according to the expert.

Nonetheless, Meyer emphasized that with the growth of Chinese demand, energy markets will become more stable.

“With China emerging from the zero Covid-19 policy, the demand for LNG will increase, making it difficult for Europe to control the shipped supplies,” she said.

Meyer noted that the current situation was due to the fact that the gas price ceiling set by the European Union to punish Russia could be counterproductive in attracting the required quantities of gas, as there are fewer buyers, which gives them great bargaining power.

According to Meyer, this comes at a time when the demand for oil has exceeded pre-pandemic levels that topped 102 million barrels per day, while the market is still tight, with OPEC’s surplus production capacity at about two barrels per day.

Growth and production of LNG supplies would remain limited until 2025 amid a very long business cycle, she noted.

The Ukrainian war, according to the expert, led to a decrease in Russian gas consumption and production and a redirection of Russian crude oil trade routes away from Europe to Asia, specifically through China, India and Türkiye, where Russian crude is bought at a huge discount.

Regarding the energy markets, Meyer said she believed that the lack of investment was the main challenge in the hydrocarbon sector.

“Saudi Arabia and the UAE invested reliably, while international oil companies were reluctant to do so due to profitability concerns, amid the Covid-19 pandemic and environmental legislation,” she remarked, adding: “Saudi Arabia is not a player in the global gas and LNG markets, but it is set to become a major player in hydrogen in the future.”



Boeing Shares Drop after Air India Crash

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
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Boeing Shares Drop after Air India Crash

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave

The crash of an Air India 787-8 Dreamliner jet minutes after taking off on Thursday poses another challenge for Boeing, whose new CEO has been trying to rebuild trust following a series of safety and production challenges.

It was not clear what caused the crash, as air disasters can occur for a number of different reasons. The London-bound plane crashed in India's western city of Ahmedabad, authorities said, in the world's worst aviation disaster in a decade.

The disaster, in which most of the 242 people on board were killed, muddies the efforts of CEO Kelly Ortberg to move past its recent issues after the planemaker hit production targets in May and received a vote of confidence from airline bosses in recent months. Shares were down about 4.9% on Thursday. Boeing said it was aware of the initial reports and was working to gather more information.

Before the crash, airline executives had been voicing greater confidence in Boeing's rebound in deliveries and in Ortberg's leadership after years of reputational damage for the planemaker.

At a recent summit in New Delhi, executives were more optimistic over Boeing's crises around safety and regulation. The widebody 787 planes, one of the most modern passenger aircraft in service, have never had a fatal crash until the Air India incident. They were grounded in 2013 due to battery issues, but no one was reported injured.

"It's a knee-jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years," said Chris Beauchamp, analyst at IG Group.

Boeing's narrowbody 737 MAX jets were grounded for years following two fatal crashes and have faced years of scrutiny and production delays. Last year, the US planemaker came under renewed scrutiny after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary FAA grounding and fresh concerns over quality control.

Shares of Spirit AeroSystems, a key supplier, and GE Aerospace, which makes engines for the jet, also fell about 2% each. GE Aerospace said it has activated its emergency response team and would support the investigation, but did not specify if the Air India aircraft was equipped with its engines.

The engine maker did not immediately respond to a Reuters request for comment.

Boeing's outstanding debt also sold off modestly after the crash. Its bonds maturing in May 2029 were trading at 88 basis points over Treasuries, or 10 basis points wider than on Wednesday, according to a bond broker.