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** Money is abroad as shared corruption ** Rising insecurity in Rohingya camps ** Investors lose Tk 10,261cr at DSE in one week ** 8 detained over Friday’s deadly attack ** T20 WC Super 12 Tigers seek winning start against Lanka ** Weak supply policy behind health sector’s anarchy ** Muhibullah murder ‘Killing squad’ man among 4 arrested ** Communal violence in Cumilla Iqbal, 3 others remanded ** Japan's Princess Mako celebrates final birthday ** Customers are seen buying vegetables at Gopibagh kitchen market in the capital on Saturday. Vegetable prices remain sky-high despite ample supply. ** Payra Bridge opens to traffic today ** Tripura Muslim body alleges attacks on mosques ** Soybean meal export ban yet to impact on poultry price ** Classes in schools to increase from Jan: Dipu Moni ** Other than looters and high government functionaries, all are marginalised ** A large crowd gather at the site of derailed freight train in Dhaka's Kawran Bazar area on Friday. ** Queen back at Windsor after hospital stay ** The Hindu, Buddhist and Christian Unity Council stage a torch procession in the capital's Shahbagh intersection on Friday protesting communal attacks parts of Bangladesh during the Durga Puja celebrations. ** Killings in refugee camp to disrupt repatriation: FM ** 7 killed in gun attack on Ukhiya Rohingya camp ** Minority council opt for mass protests ** No law to recruit judges in higher courts ** 1 injured die in DMCH ** Prime suspect of communal violence brought to Cumilla ** Malaysia lifts migrant worker ban **

Energy crunch raises fear over economic recovery

13 October 2021


Reuters :
Authorities from Beijing to Chennai scrambled to fill a yawning power supply gap on Tuesday, triggering global stock and bond market wobbles on worries that rising energy costs will stoke inflation and curtail an economic recovery.
Power prices have surged to record highs in recent weeks, driven by energy shortages in Asia, Europe and the United States, with an energy crisis in China expected to last through to the end of the year and crimp its economic growth.
And the impact of supply crunches in power and manufacturing components is showing up in data, which is deepening disquiet.
A sell-off in global stocks and bonds extended into Tuesday, taking short-dated US Treasury yields to 18-month highs, while world stocks fell for a third straight day on fears that energy prices were putting a dampener on economic growth.
Data on Tuesday showed Japanese wholesale inflation hit 13-year highs last month, while shoppers in Britain slashed spending and China recorded a 20% drop in car sales. In its latest attempt to deal with the crisis, China said it will further liberalise coal-fired power pricing and force industrial and commercial consumers to buy from the market.     A widening power crunch has forced production curbs across China in industries such as cement, steel and aluminium as power producers, unable to pay for coal, cut output. The utilities have been unable to keep up with post-pandemic demand.
In India, the power ministry warned states that federal power producers will curtail supply to them if their utilities are found selling power on exchanges to take advantage of surging prices.
Asia's third-largest economy is facing large-scale outages as several power plants have low coal inventories as a result of the sharp spike in global energy prices.
The ministry said it had directed power companies to boost supply to the capital Delhi, whose chief minister warned on Saturday of a potential power crisis.
Oil rose towards $84 a barrel on Tuesday, within sight of a three-year high, as a rebound in global demand after the Covid-19 pandemic caused price spikes and shortages in other energy sources. Coal has scaled record peaks and gas prices remain four times higher in Europe than at the start of 2021.
To address recovering demand OPEC+, which groups the Organization of the Petroleum Exporting Countries and other oil producers led by Russia, is increasing output monthly as it undoes curbs it put in place to support prices and oversupply.
The price of Brent crude has surged by more than 60% this year, supported by those OPEC+ supply curbs as well as record European gas prices, which have encouraged a switch to oil in some places.
Brent crude was up 24 cents or 0.3% at $83.89 a barrel at 0810 GMT. On Monday it reached $84.60, its highest since October 2018. US oil gained 21 cents or 0.3% to $80.73 and on Monday hit $82.18, its highest since late 2014.
The sharp rise has meant OPEC+ has come under pressure from consumer nations, with a US official on Monday saying the White House stands by its calls for oil-producing countries to "do more" to ease the situation.
In France, President Emmanuel Macron said on Tuesday the country wants to be a leader in green hydrogen by 2030 and build new, smaller nuclear reactors as part of a 30 billion euro ($35 billion) investment plan.

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