Keep pulling the thread on Homae Yun Tai.
South Korea and Japan have relicensed their coal-fired power plants in response to energy security concerns.
The recent crisis in the Strait of Hormuz has caused a long-term structural reconfiguration of global energy supplies, similar to the impacts of the Russia-Ukraine war and the COVID-19 pandemic.
Homae Yun Tai predicts that South Korea and Japan will rethink their long-term energy supply contracts from the Middle East due to recent geopolitical instability.
Asian countries like South Korea and Japan have approximately six weeks' worth of LNG and other commodity reserves.
Even with oil prices at $100 per barrel, energy companies are not significantly increasing drilling activity in areas like West Texas due to price volatility and uncertainty.
Fertilizer costs represent approximately 10% of total food input costs in the United States and 15% in Europe.
Asian countries have been more severely impacted by recent energy supply disruptions than European countries.
Due to fuel shortages, Sri Lanka implemented energy-saving measures that included making Wednesdays a day off from work.
The average price of gasoline in the U.S. is approximately $4.15 per gallon, according to recent CPI data.
Homae Yun Tai predicts that U.S. consumers will experience secondary inflationary effects from rising costs in fertilizers, chemicals, and energy-intensive transport over the next few months.
Natural gas prices in the U.S. are around $4 per unit, while in Asia they are significantly higher at $19 to $20 per unit.
Over 26 U.S. states have implemented their own renewable energy policies with targets set for the 2030 to 2035 timeframe.