Analysis of Global Power Market slide image

Analysis of Global Power Market

Analysis of China's Power Operation Market Analysis of Fuel Prices (3/3) Market Price of Crude Oil, Global, 2013-2023E US Dollar per Barrel 104.1 96.2 110 11 100 90 80 70 76 60 52.8 50.8 42.8 50 50 40 40 32 30 74.0 72.0 69.0 69.1 69.2 69.3 CAGR(13-18) CAGR(18-23E) 20 Crude Oil -7.1% -0.8% 10 10 0 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E • • . Highlights Historically, a decline in crude oil price is observed during 2013 to 2016, which can be attributed to the slowdown of global economic growth, oversupply of crude oil by OPEC countries, and reduced reliance on crude oil from U.S. due to the shale gas discovery. Price of crude oil started to recover gradually after 2016 and bounced back to US Dollar 72.0 per barrel, as OPEC countries and Russia reached agreement on cutting oil production. Moreover, the rejuvenation of global economy particularly the emerging countries has further increased demand on crude oil for industrial production and manufacturing, resulting in crude oil price increase. In future, oil price is expected to remain relatively stable while factors such as global trade disputes, U.S.'s tightening monetary policy and slowdown of European economies may add uncertainties to the prospect of global economy and oil price. FROST & SULLIVAN Source: World Bank, Frost & Sullivan 71
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