Bernstein's Beveridge on Energy Markets

The video discusses the impact of the Russian invasion of Ukraine on global oil prices, predicting higher short-term prices due to increased risk premiums. It also examines the effects of China's lockdowns on oil demand, noting a reduction in mobility but not a negative demand growth. The challenges of China's domestic oil production are highlighted, with high costs and limited growth potential. The role of US shale in global oil supply is explored, emphasizing the need for OPEC to balance reduced Russian exports and increased demand.

How has the Russian invasion of Ukraine affected global oil prices?

• It has had no significant impact on oil prices.

• It has decreased oil prices due to increased supply.

• It has increased oil prices due to higher risk premiums.

• It has stabilized oil prices by balancing supply and demand.

What is the expected long-term price of Brent crude oil used for equity valuation?

• $95 per barrel

• $75 per barrel

• $65 per barrel

• $85 per barrel

What is the impact of China's rolling lockdowns on its fuel demand?

• It has had no impact on fuel demand.

• It has resulted in a short-term reduction in demand but not negative growth.

• It has caused a slight increase in fuel demand.

• It has led to a complete halt in fuel demand.

What is the main challenge for China's domestic oil production?

• Abundance of low-cost oil fields.

• High production costs and limited growth potential.

• Lack of investment in new technologies.

• Excessive government regulations.

What is the expected role of US shale production in the global oil market?

• To significantly reduce US oil production.

• To have no impact on global oil supply.

• To decrease global oil prices by flooding the market.

• To contribute to over a million barrels of production growth.