In case you missed it, March oil futures managed to top the $90 milestone this week. To contextualize this move, in the last 52 weeks, oil prices have surged roughly 65%, including the 22% jump in the 5 weeks of 2022 alone. When was the last time oil futures traded above $90 per barrel? October 2014.
Will this price increase trickle down to the price at the pump? Almost certainly. And to pour some gas on the fire (pun intended), Goldman Sachs, Bank of America, Morgan Stanley, and other big players on the Street all see oil surpassing $100 per barrel.
The people who call themselves experts have cited a variety of catalysts; such as supply chain bottlenecks, surging demand, inflation, political/geopolitical tensions, lost Covid revenue, and even corporate greed and energy regulations. However, these ‘experts’ that have cleverly found a link between those catalysts and the increasing price of oil, seem more interested in debating/speculating the problem rather than searching for a solution.
But as history has shown, strenuous economic events always seem to prove the resiliency of the working class. Paying 65% more for an inelastic product is exceptionally burdensome; on top of all the other inflationary concerns. But the fact that we have sustained our way to these levels also proves that our economy has been much stronger than we all thought.
So cheers to our working class,
#energy #economy #oil #supplychain #gas #economics #geopolitics #futures #commoditymarkets #finance #supplyanddemand #speculation #icymi
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