Impacts To Industry: High Energy Prices Threaten Recovery
Tuesday, 2nd November 2021
Webinar | 09:00 London GMT | 10:00 Central European Time | 17:00 Singapore SGT
High energy prices globally are impacting industries in the form of lower output, rising production costs and exacerbating existing supply chain issues. Auto manufacturing in China has slowed on power rationing, specialty chemical manufacturers are curtailing output and reports of agriculture impacts from higher fertiliser prices and an inability to process livestock efficiently are becoming more frequent.
Power prices are surging in response to record shortages of coal and natural gas in multiple markets, creating a feedback loop for energy commodities as consumers switch fuels, pushing prices higher across the board. The use of crude oil and fuel products such as diesel and fuel oil will increase as power generators switch to cheaper alternatives where possible to make up for the gap in power generation. Underperforming renewables are also placing strain on power grids with unseasonable weather remaining a key risk.
We expect energy price volatility to remain high throughout the Northern Hemisphere Winter with prices expected to climb even further before eventually topping out as demand falls in response to elevated prices, paring back gains but leaving prices substantially higher than long-term averages.
In this webinar, we will examine the outlook for energy prices as well as the impacts to wider industry and the global economic outlook, with a focus on Autos, Agriculture, Power & Renewables and Oil & Gas sectors.
Head of Oil & Gas Analysis
Joseph joined Fitch Solutions in September 2018 as Head of Oil & Gas Analysis and is based in the London office. He oversees a number of key areas including analysis, content, and product development. Under his guidance, the research team heavily focus on the supply and demand of energy and their effects on global oil and gas prices. Supported by a diverse team of analysts, he works closely with clients to ensure mutual success.
Head of Autos and Infrastructure Research
Anna-Marie Baisden has headed Fitch Solutions’ Automotive research team since 2005, extensively covering the global autos market. Since late 2021 she has also taken over management of the Infrastructure team, underlining the ‘Connected Thinking’ approach to key areas of research such as the electrification of vehicles and the associated infrastructure. She is responsible for the production and coordination of content and analyst development across the three teams. Anna-Marie has contributed op-ed pieces for leading industry publications such as Automotive World, and is regularly called on for her expertise on major news programs such as the BBC World Business Report and CNBC.
Emerging Markets Economist
John Ashbourne is a senior economist covering emerging markets for Fitch Solutions. He was previously the head of African economics at Capital Economics.
Dr Thomas van Lanschot
Head of Power & Low Carbon Energy Research
Thomas van Lanschot leads our research into global power markets and low carbon energy utilizing over a decade of experience in the field and has worked for several years at Fitch Solutions as a leading analyst for the power and renewables team in London. He joined Fitch Solutions after completing a PhD in energy systems and has used his background in technical renewable analysis to build out new research themes at the company.
Senior Analyst Commodities
Samuel works in the Commodities team as a Senior Analyst based in London. Sam covers the agribusiness sector, formulating sector trends and price analysis as well as communicating them with clients. Prior to joining Fitch, Sam worked at Capital Economics conducting global macroeconomic research as part of the commodities team. Sam hold a master’s degree in Economics from the University of St Andrews as well as a bachelor’s degree in Mathematical Economics and Statistics from the University of Birmingham.
Industry Analyst Oil & Gas
Adam Russell works to identify and analyse key trends in the oil and gas markets. Prior to joining Fitch Solutions, Adam previously worked as a Market Risk Analyst at SmartestEnergy Ltd, the UK’s leading purchaser of independent generation and supplier of renewable electricity. Adam has experience in the UK gas, power and renewables market. Adam holds a Masters Degree in International Financial Markets and Bachelor’s Degree in Geology, both from the University of Southampton.
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data are solely derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.