‘Volatile’ markets forecast for 2023 triggered by war, energy crisis: S&P Global VC

‘Volatile’ markets forecast for 2023 triggered by war, energy crisis: S&P Global VC

The war in Ukraine, a global energy crisis and high interest rates could trigger volatility in markets across the world in 2023, S&P Global Vice Chairman Daniel Yergin told Al Arabiya.

Although energy security is “back on the table” for all major economies according to Yergin, he added that “the era of a fairly free flowing global oil market has been replaced by this partitioned… fragmented global oil market.”

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Factors altering the existing market this year include sanctions hurting Russia’s exports of oil and natural gas following its invasion of Ukraine and import-dependent countries turning to the Gulf and other supplier to offset Russian cuts.

“Countries are working very hard to ensure that they have conventional [oil] supplies,” said Yergin. Parallelly, EU and US governments are stepping up legislation to boost the use of renewables, he added.

“Even as efforts are made to enhance energy security, people are also looking at it in terms of carbon footprint and being more efficient in the use of energy.”

When asked about the general air of tension around a looming recession linked to COVID-19 in China and the price of oil, Yergin said: “When