The $ 1 billion billion landlord owner of Norway can sell all departments in oil representatives.
The shift is a look across its archipelago for the oil industry. $ 1 trillion, built on oil itself, now has the potential to see future oil being so dangerous.
Norway's wealth of wealth is not available to get out of its & # 39; oil industry completely. The government is only a suggestion to & # 39; leaving oil and gas production and exhibition companies (even, western-west producers). The reason why your property wants to continue is that it's a? Looking at the long-term oil market as it is accessible, unacceptable, and at this point, is vulnerable to low prices. "The ambition is that our affluent wealth will be more vulnerable to a permanent fall in oil prices," said Norwegian finance minister Siv Jensen. The property currently holds $ 37 billion in oil and gas stocks.
Based on that settlement, the government wants to avoid the producers, because they are the largest companies that will affect the changes in oil prices.
But the move is also one of the most powerful symbols still in terms of its ability for an oil demand. The idea of oil prices below is assessed at a high level and a decline in consumption. And if the assets of a $ 1 trillion owner's wealth of wealth are very dangerous to oil, other investors may start to & # 39; fretting. It is worth noting that oil and gas stock fell just after the news.
On the other hand, the sale money could also be seen in the narrow narrowest of Norway. The landowner property fund was built with oil revenue, so the move is humorous. Criticists may say that it is a little wealthy for a country that, and still, is funded by an oil income to hold such a position on time to coming of oil industry.
But that's a feeling that's; point. Indeed, as the Norwegian government still receives much of its income from oil, it is also a reason why it wants to diversify. The Norwegian government does not make a moral advocacy about climate change, or a. leaving oil stocks for symbolic purposes, but just for discharging danger. The future situation in which low-lying oil prices, which may be on a permanent basis, will increase the Norwegian government revenue center. For both budgets and the wealth of landowners who are at risk of that situation – one that is completely impossible – it would be cared for.
Related: Exxon Punished Le Wall Street for Cost Strategy
"Oil industry is an important and important business in Norway for many years to come. Government revenue from [continental] Company subsidiary profit subset will be in the west. So this is about sending to & # 39; threat, "said the finance minister, Siv Jensen, according to FT.
The wealth of sovereign wealth has already gone out of coal stocks, and at this time, it is not understood as a result of the crisis in that industry. Oil may be next. The new proposals say that the property can still invest in integrated oil companies, and those whose hands are in renewable energy.
In the related news, Morgan Stanley says that China's oil demand could come to it height as soon as 2025, driven by an early railroad and rapidly moving to electric vehicles. And as China is going, so it's a going on the oil market. China has accounted for more than one third of the annual growth in oil demand for most of this 21st century. China has a high level of Chinese oil demand; show how the crops come into the total oil demand.
Associated: Kashmir Conflict Riyadh Air Edge
But the rehearsal is faster than its market consensus. Although there is a lack of high demand replication – and they run the gamut – a lot of centers on or around 2030. Some are faster and many more are later, but 2030 is standing of the unofficial agreement. Morgan Stanley's introduction, then, has built some of the rods.
"China is now a growth driver on a hard global demand," said Andy Meng in the report. "We believe that the petrol stations and petrol stations have the most lost potential, and the battalion companies tend to be the top winners."
China is already the world's biggest market for electric vehicles, and it is expected to grow rapidly in the years ahead. EV has already sold in China excellent 6 per cent, and new government incentives to accelerate the transition.
The last few months of data are even more fatal. There are broad car shows in China contract, as long as EV is a & # 39; grow rapidly, on the way to around 60 per cent growth rate this year. It's a bit early to name China's insight engine in China, but if that move is going on, this truth is not far away. In other words, it is not difficult to think about a future oil demand in China.
If China has access to a high level on demand, many other investors may want to remove their stock from the oil industry.
By Nick Cunningham of Oilprice.com
More of the best efforts from Oilprice.com: