There is a disconnect between the 'realities of the dynamics of the [oil] market' and the policies that are being implemented, said Daniel Yergin of IHS Markit.
gained 60% so far this year as demand jumped due to economies reopening and loosening pandemic restrictions.Separately, Yergin said that finding a new balance between the U.S. and China is the most important issue at hand — something that's even more urgent than climate change.
The rest of the world doesn't want to choose between the two powers, but the competition is going to continue, he added. China sees the development of alliances like the Quad and Aukus as the West trying to contain them, while the U.S. wants to deal with Chinese "expansionism and growth," he said. The Quad is an alliance comprising economic powers like Australia, India, Japan and the United States, while Aukus isClimate change will unfold over 30 years, but the relationship between Washington and Beijing is an "immediate issue" that is seeing tensions "bubbling up," Yergin said.