The State Pension Fund of Norway, which is the world’s largest sovereign reserve fund and the largest “oil pot” of the planet, has decided to invest in an offshore wind farm. This is reported by CNBC.
For these purposes, they intend to spend 1.375 billion euros (1.63 billion dollars). The fund, which has about $1.3 trillion under management, is preparing to buy back 50 percent of the shares of the energy company Orsted. The deal is expected to be completed in the second or third quarter of 2021, and other details have not yet been disclosed.
Borssele 1&2 power station is located in the North Sea, 93 kilometers from the coast. The company itself calls it the second largest operating offshore wind farm in the world, which “ supplies renewable energy equivalent to the annual electricity consumption of one million Dutch households.”
Earlier it became known that it is going to build another large wind farm in the North Sea and adapt it to save the planet. The energy generated there will be directed to the production of hydrogen, which is considered an environmentally friendly substitute for oil and gas.
In general, the Norwegian reserve fund is gradually abandoning investments in traditional sources of energy and fuel. The organization began to refuse to invest in oil and gas three years ago. At the end of January, it became known that the fund will completely withdraw from investments in companies that are engaged in the exploration and production of hydrocarbons. The reasons were financial losses due to the coronavirus — at the end of 2020, oil and gas companies included in the portfolio of the Norwegian reserve fund brought it a loss of $10 billion.
The next economic war between the United States and China will be related to the problems of climate change, experts promised. Reported by CNBC.
Bank of America’s managing director for research, Haim Israel, suggests that the “climate war” between Washington and Beijing will follow the technology and trade wars, as climate change will become the dominant economic and political theme in the coming decades. “It’s not just about saving the planet. We believe that climate strategies offer a path to global excellence because there is much more at stake here, ” he concluded.
The advantage in the production of electric vehicles will also be important. “So far, about half of the oil goes to the transport market, and cars make up the bulk of it,” Israel said. The expert is confident that whoever becomes the leader in the production of electric vehicles will definitely have a huge advantage in the future. So far, the market is ruled by the American Tesla, but competitors from China are already stepping on its heels.
Under Donald Trump, a trade war broke out between the United States and China, and tensions remain under the administration of new President Joe Biden. In February, he said that the United States is working with the European Union to fight China and resist its “economic abuse and coercion.” Speaking at the Munich Security Conference, Biden said the US and its foreign partners should “make China accountable for its economic practices.”
However, experts are confident that the United States will be richer than China for several decades, judging by GDP per capita. According to the latest data from the International Monetary Fund (IMF), China’s GDP per capita last year was projected at $10,582, which is about six times less than in the United States.
Trading on the oil market on Friday began with a rise in prices for raw materials. Already in the morning, the price of a barrel of Brent oil rose by 0.86% to $62 48 cents. A barrel of WTI crude rose 1.13% to $59.22.
The situation in the Suez Canal contributes to the growth of oil prices. It is actually blocked for the movement of ships, including oil tankers. The problem arose after a 400-meter container ship ran aground.
How long it will last is still unknown. Experts note the uncertainty in the oil market. This is indicated by high volatility.
More significant growth in oil prices is hindered by the difficult epidemiological situation in the United States and Europe. The number of diseases continues to grow. The authorities of a number of countries were forced to take additional decisions on restrictive measures.
This development of events raises concerns among investors about the suspension of growth in demand for oil.
Benchmark oil prices are rapidly declining — the price of Brent has already reached $62 per barrel. The reason was the increase in the incidence of COVID-19 and the third wave of the pandemic in Europe. This leads to the introduction of strict quarantine restrictions, which clouds the prospects for oil demand.
The price of the May Brent crude oil futures fell to $61.98 per barrel by 17:38, according to Investing. This is 4.09% ($2.64) less than at the close of the last trading.
May WTI futures fell 4.45% ($2.74) to $58.87.
“Oil prices are falling on concerns about the third wave of coronavirus in Europe, which could negatively affect the prospects for economic recovery and energy demand,” Interfax quoted Margaret Young, an analyst at DailyFX, as saying.
Think Markets analyst Fawad Razaqzada believes demand will pick up as travel restrictions ease in the coming months, but “the impact of this will be offset to some extent by an increase in oil reserves.”
Recall that the number of deaths from COVID-19 has also increased worldwide. As for the infection rate, the global average increased by 8%, but in Europe, the increase was 12%. At the same time, anti-quarantine protests have not subsided in Europe.
The European Union has frozen plans to include the leadership of the Turkish oil corporation in the sanctions list.
It is reported by Reuters with reference to four EU diplomats.
In December, EU leaders proposed an asset freeze and entry bar for Turkish oil corporation officials for Turkey’s “unauthorized drilling activities” to explore for natural gas in disputed waters in the eastern Mediterranean.
The EU also agreed to consider tougher economic sanctions at the March 25-26 summit.
But the more constructive tone of Turkish President Recep Tayyip Erdogan this year, German Chancellor Angela Merkel’s support for reconciliation, and the first direct talks between old enemies Turkey and Greece over the past five years have helped change the mood.
The new administration of US President Joe Biden also called on Brussels not to impose sanctions at a time when Turkey, a NATO ally and an EU candidate country, is more willing to compromise, European and American diplomats said.
“Work on additional blacklists of Turkish persons has stopped and we are no longer talking about economic sanctions,” said one EU diplomat.
A second EU diplomat said the work “never really started” and a third said that “the diplomatic path has priority.”
The EU Foreign Service declined to comment on the information about the sanctions.