Asia Faces Economic Challenges Amid Energy Crisis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Energy Supply Crisis: The blockade of the Strait of Hormuz has led to a daily oil supply shortage of about 10 million barrels, prompting governments across Asia to implement emergency measures to cope with soaring energy costs, which could raise the risk of stagflation.
- Currency Pressure Intensifies: Asian currencies are under pressure with rising risks of capital outflows, particularly in Indonesia and the Philippines, where inflation surged to a 20-month high of 4.1% in March, constraining fiscal space and impacting government subsidy capabilities.
- Reserve Buffer: Compared to 1997, South Korea's foreign exchange reserves have exceeded $400 billion, while India's reserves stand at around $688 billion, providing a buffer against the current crisis and reducing the risk of capital flight.
- Cautious Market Reaction: Despite the challenges, investor reactions across the region have been relatively cautious, with selective outflows from Indonesian bonds offset by modest net inflows into regional equities, indicating that broad capital flight has not yet occurred.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 45.900
Low
6.38
Averages
84.26
High
503.69
Current: 45.900
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. Its segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. The gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and its solar, wind and hydrogen businesses. The oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. The customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle (EV) charging, as well as Castrol, aviation and business-to-business (B2B) and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. The other businesses and corporate also comprises the Company's shipping and treasury functions, and corporate activities worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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