If you follow my blog, you know I was bullish about the energy sector since a few months back when everybody’s focus was on technology stocks and bitcoins.  I also reiterated my conviction in my August “Ivan’s reflection”. My thesis was simple:

• The economic rebound after Covid lockdowns have lifted will boost consumer demand.
• Lower investment by miners and drillers has constrained fossil fuel production.
• The hyped ESG Investing idea and compliance requirements pushed the world to overestimate how much they can reply on renewal energy and underinvest in energy infrastructures.

Today, China’s power crunch, mirrored in Europe and elsewhere, have proved that. The commodity markets are roiled. The oil price has surpassed $80 per barrel for the 1^st time in 3 years. While the financial media talked a lot about the US monetary and policy changes this year, it is a non-event so far. On the contrary, China’s draconian reforms have shaken many parts of the world....