An Oil Shock in stealth

OPEC are meeting today, it could be a doozy….murmurs of supply cuts.

My question to answer what OPEC may decide is…..

what do the Saudi’s and Russia want or need ??
and what will hurt America the most ??
especially following the recent accusations made by the U.S about MBS and Biden approved missile strikes against Iranian backed militia…….

the answer is higher oil prices.

Logic suggests a nice reversion of Brent back to $53 would be sensible, equitable etc.
but without being a purposeful antagonist and we are a year on from last years March 8th stoush,

although Brent at $75 would remind many who’s in charge….

and I reiterate that inflation (meaning higher interest rates and higher government and corporate debt servicing costs) will likely come from higher prices in the energy complex and definitely not from services and consumer products.

March 4, 2021
by Rob Zdravevski
rob@karriasset.com.au