Economy

Middle East crisis  Reactions
Sources: China ready to export jet fuel and gasoline

China is ready to resume exports of diesel, gasoline and jet fuel starting in May, writes the Financial Times.

According to sources to the newspaper, state-owned oil companies have applied for export permits to be allowed to ship fuel. China imposed a ban at the beginning of the war to protect its domestic supply, something that may now be eased.

– A resumption of oil exports could significantly alleviate supply shocks in Southeast Asian countries, Liao Na, founder of GL Consulting, which analyzes China's energy and industrial sectors, tells the FT.

Economic effects
Oil prices rise: "The longer the conflict, the higher the price"

The price of oil is rising on Tuesday morning after sluggish peace talks between the United States and Iran, international media reports. Brent is trading around $ 109.5 per barrel, a rise of 1.2 percent.

– The longer the conflict continues, the higher the price will be [...] If the conflict ends tomorrow, crude oil prices are expected to fall by $10 a barrel, Andy Lipow of Lipow Oil Associates tells CNBC.

Goldman Sachs warns that Brent could rise towards $120 a barrel if the conflict continues.

“Prices are still below the peak at the end of March, probably due to market expectations that Hormuz will reopen,” the bank’s analysts write. 

Ryanair CEO: Oil price shock could lower Norwegian

Airlines such as SAS and Norwegian risk large losses if fuel prices remain at current levels or increase. This is according to Ryanair CEO Michael O’Leary, who believes that “one or two” airlines could even go bankrupt, reports the Norwegian Nettavisen.

“If oil stays at $150 a barrel until August or September, all airlines that are not guaranteed to be rescued by the state, like Norwegian, will have real problems,” says O’Leary.

For Ryanair, however, he believes the situation is calm because the airline has secured about 80 percent of its jet fuel until March 2027.

O’Leary also dismisses the Swedish government’s early warning of fuel shortages. He believes that governments “are, as usual, too late and wrong.” Instead, he predicts that the risk of fuel shortages is decreasing.

Young people’s drinking habits
Young people drink too little wine: “Worst crisis in 100 years”

Young people are drinking less wine than before. This has led to a huge crisis in Chile’s wine industry, reports Reuters.

The decline is global, with reduced demand in markets such as the United States, China and the United Kingdom, according to Julio Alonso of the Wines of Chile trade association. In the US, a recent Gallup poll showed that 50 percent of young adults drink alcohol, down from 59 percent in 2023.

Now the industry is aiming to make vineyard visits a holistic experience where visitors can trample grapes and cut vines. But the mood is still gloomy.

– We are probably living through the worst crisis in the wine world in 100 years, says 25-year-old sommelier Felipe Rivera.