International News 23/01
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Benchmark oil prices continue to weaken, Brent to US$ 78.15 and WTI to US$ 73 per barrel.
Oil prices declined for the second consecutive day due to concerns about the global economic outlook, which is pressuring the demand for oil, despite ongoing geopolitical tensions in the Middle East and an attack on a Russian fuel export terminal. The price of Brent crude oil for March 2024 delivery fell by 41 cents to $78.15 per barrel, while US West Texas Intermediate crude oil futures for February 2024 delivery dropped by 2 cents to $73.39 per barrel. The reopening of the oil market demonstrated the prevailing sentiment in the industry, disregarding geopolitical tensions. This sentiment was further reflected in the minimal movement of prices in response to the alleged Ukrainian drone strike on a major Russian fuel export terminal. In the Middle East, the Gaza war continues, and the US has conducted strikes on Yemen's Houthi militants.
China's Coal Production to Reach Highest Level in 2023
China's coal production reached a record high in 2023, indicating a recovery in commodity production following the challenges imposed by the Covid-19 pandemic. This increase in production is attributed to the focus on energy security and rising demand post-pandemic. According to data from the National Bureau of Statistics, China produced 4.66 billion metric tons of coal in 2023, marking a 2.9% increase from the previous year. This further solidifies China's position as the world's leading coal producer. In December alone, production reached 414.31 million tons, showing a slight increase from the previous year. Although the growth rate has slowed over the past year due to energy security measures, analysts predict a slight increase in China's coal production in 2024.
Electric Car Prices Shrink in Just 3 Years
Electric cars in the UK experience high depreciation, with their value halving in just three years, surpassing the depreciation of gasoline cars. Research by Auto Trader reveals that last year alone, the price of used electric cars dropped by 23%, resulting in a ￡24,000 decrease in value over three years for a ￡50,000 electric car, while a gasoline car of the same price only depreciates by ￡17,000. The depreciation of electric cars has been attributed to the easing of the supply crisis caused by COVID-19 and the increase in electricity prices, leading to reduced demand for used electric cars. Additionally, falling gasoline prices further contribute to the decline in the value of electric cars. Auto Trader predicts that the pressure on used electric car prices will persist this year due to lease returns and manufacturers lowering prices on new vehicles. The marketplace expects an increase in the supply of used electric cars by 2024 as the number of new electric vehicle registrations between 2020 and 2023 is estimated to reach 800,000 units.