Energy Prices: Facing x Postponing
The exponential rise in oil prices is encouraging two types of behavior. 1st) facing the challenge and 2nd) subsidizing an artificial price level.
The countries that decide to face it recognize that this is a situation that will last longer because, for many years, the price of oil was very low - not stimulating investments in increasing its production capacity.
In this scenario, the war initiated by Russia only made the problem. more acute. And the "courageous" countries are already organizing actions to stimulate the necessary reduction in consumption, such as demand response programs.
Countries that decide to prevent market prices from reaching their citizens are in fact creating a "time bomb" as the difference between the real and the subsidized will be charged "sooner than later" in a variety of very well known forms
Brazil - it seems - is in the ranks of those who want to subsidize prices. The elections are here and there are huge interests at stake. The cost of this adventure should be much more expensive - in the end - than the one that will result in the countries that will truly face the challenge.
Rafael Herzberg
Expert Member
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