The U.S. and China stay secured a battle for power, and it’s fretting that they’re not working to engage and team up with each other, energy specialist Dan Yergin informed CNBC.
He was weighing in on a Reuters report that pointed out sources stating U.S. President Donald Trump is preparing to include China’s nationwide overseas oil and gas manufacturer, CNOOC, to a defense blacklist.
Yergin, who is the vice chairman of IHS Markit, stated the relocation might become part of the idea of “decoupling,” or a disengagement in between the 2 nations.
“It’s an alarming situation, we have a spiral going on now where instead of talking about engagement and collaboration and constructive relationship, it’s great power competition, strategic rivalry, peer competitors,” he informed CNBC’s “Street Signs Asia” on Tuesday.
Flags of the U.S. and China fly along Pennsylvania Avenue in Washington, D.C.
Andrew Harrer | Bloomberg | Getty Images
“I think right now, the Trump administration is putting down a series of landmines almost, of difficulties for a Biden administration,” he included.
Yergin stated bringing stability to the U.S.-China relationship is the “biggest geopolitical issue” that President-choose Joe Biden will need to deal with.
“It will take both Beijing and Washington wanting to move in that direction, and I think it’s become much more difficult over the last year or year and a half,” he stated, keeping in mind that other nations will be impacted by U.S.-China stress.
Oil need outlook
Separately, Yergin talked about the outlook for the oil market as OPEC+ thinks about an extension to output curbs. OPEC+ is comprised of members from the oil-producing group plus their non-OPEC allies.
“I think it’s really a struggle right now between … the vaccine rally in prices and the coronavirus impact on demand,” he stated. “That’s what’s at the heart of the battle that’s going on right now with OPEC and non-OPEC.”
Brent crude was greater by 0.29% at $48.02 on Tuesday afternoon in Asia, while West Texas Intermediate was up 0.26% at $45.46.
He stated oil rates are expecting a healing in need and indicated a choice up in U.S. need prior to infection cases began to increase once again.
“In fact, look at Chinese demand today. It’s several hundred thousand barrels a day higher than it was this time last year, and we’ve seen the same in India,” stated Yergin.
“Even though work patterns will have changed, jet travel will change, I think we’re going to see demand come back to what it was in 2019 sometime in 2022, 2023,” he stated.