reply Electricity tensions drive international energy prices to rebound

Industrial parks in Vietnam's northern provinces, including Bac Giang and Bac Ninh, where manufacturers such as Canon, Foxconn and Samsung have factories, have been affected by power outages due to hot weather that has overloaded the power supply system.In early May, Vietnam hit an all-time high temperature of 44.1°C, breaking the record set in 2019. Not only Vietnam, but the heat will continue to scorch the northern hemisphere this summer. Since entering May, many countries have seen rare high temperatures, such as Bangkok, Thailand, where the highest temperature reached 41 degrees Celsius; Isabela province in the Philippines, where the highest temperature was 39 degrees Celsius, with body temperatures in some areas approaching 50 degrees Celsius. Laos, Vietnam were recorded 43.5 ℃, super 44 ℃ high temperature, are record highs! Especially since June, more than half of China's provincial capitals have seen the first high temperature of the year, and most of them are "early arrivals". The first high temperature day in Hangzhou, Chongqing, Guangzhou and other places is even more than a month earlier than usual.High temperatures and dry weather brought about by high temperatures led to a significant increase in energy use. Record high temperatures in parts of Vietnam have led to a surge in demand for electricity, forcing several cities to reduce public lighting and government offices to be urged to reduce electricity consumption by a tenth. More than 11,000 companies have agreed to cut power consumption where possible, according to Vietnam's electricity regulator. Vietnam's meteorological officials warned that the hot weather could continue into June. China will also experience localized electricity tensions in the summer heat. Recently, China's National Energy Administration and the China Electricity Council estimated that under normal weather conditions in 2023, the country's maximum summer electricity load will be about 1.37 billion kilowatts, 80 million kilowatts more than in 2022. If there is a long period of widespread extreme heat, the national maximum electricity load may increase by nearly 100 million kilowatts compared to 2022. "This year, the country's maximum electricity load is expected to exceed 1.36 billion kilowatts, a large increase over last year." In April this year, Liang Changxin, director of the comprehensive department of China's National Energy Administration, said that according to the study, China's electricity supply is generally guaranteed this year, and some provinces may experience electricity tension during peak hours.At present, although Europe has not yet appeared high temperature weather, but the southwest of Europe are above average temperature, Portugal and Spain are in April on the record high temperature. According to the current EU Environmental Monitoring Program Copernicus project report, Europe experienced the hottest summer in history last year after the fear of an extremely hot summer again this year. Extreme hot weather means a significant increase in demand for energy.On June 5, European natural gas futures prices rose 20 percent, the largest increase since March. This was due to signs of tightness in the LNG market and an expected increase in Asian gas demand. Benchmark Dutch near-month natural gas futures prices rose to 28.46 euros per megawatt-hour at one point, ushering in an increase after hitting a two-year low at the end of May this year. Prices for similar contracts in the U.K. increased by more than 21 percent. Industry research analysts said that the current trend of rising gas prices in Europe, despite weak gas demand, suggests that prices may rise. Meanwhile, a dwindling supply buffer in Europe until next winter and a possible recovery in Asian LNG demand in the second half of the year. With the recovery in international crude oil prices, there are hints of an upward trend in natural gas prices.On June 4, international oil-producing countries reached another agreement on production cuts, extending the production cuts already reached between OPEC and non-OPEC producers in 2023 to the end of 2024, with countries agreeing to adjust the daily crude oil production of OPEC and non-OPEC producers to 40.463 million barrels per day from January 1, 2024 to December 31, 2024, compared to the current production of crude oil in 2024 daily production is revised downward by about 1.4 million barrels per day. The extension of the voluntary production cut agreement by oil-producing countries, as well as another separate production cut by Saudi Arabia, favored a rebound in international oil prices. International crude oil futures prices were once higher on June 5, but were ultimately limited by the weakening international economic environment on that day.In addition, high temperature brings increased electricity consumption, generally summer will enter the peak season of coal demand, power coal prices will be probable to rise, in the high temperature added, coal prices appeared to fall after the bottom of the rebound. Coal India released a statement on May 30 that it will raise the price of nine types of high-grade power coal by 8% from May 31, the first time in five years