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

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

Cornelia Meyer, macro-economist, energy expert and advisor to OPEC, 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