‘Petro-Nations’ need ‘Petro-Dollars’

Keep this in mind when you ponder the price of oil and the supply/demand equation.

https://www.bloomberg.com/news/articles/2021-08-22/libyan-central-banker-pins-revival-hopes-on-higher-oil-output?sref=qLOW1ygh

And then when you add OPEC+ efforts to machinate a higher price by curtailing output, a nation reliant on oil receipts means oil supply will find its way to the market.

There remains a reasonable case for Brent Crude to visit $64 and failing to hold that, a trip to $57 and $54 are entirely plausible.

More so, watch when a petro-nation panics after having missed out on a selling at $76 per barrel because OPEC botched a manipulation effort trying to send it to $90.

August 24, 2021

by Rob Zdravevski

rob@karriasset.com.au

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