Dear ,
The complete impact of Russian oil sanction are still to be felt in markets. Reason being that Europe took time to implement them up untill now. The move to reduce the use of Russian Oil among other things reduces the already tight supply in the oil market. How did we go from negative oil to an
oil shortage is a completely different story. If you temporarily shut down the worlds factories that is what would happen, and it did in the depths of the pandemic. But that was an aberration. That no new investment in oil capacity has been made and Shale production is slowing, the headwinds to oil are here to stay. The move towards green energy and atomic energy can solve all this but not at the flip of a coin. In the interim we are going to deal with elevated oil prices with the risk of
it overshooting the recent 135$ mark. I discuss this in the context of the technical setup in todays video.
Rohit Srivastava
The Truth About the Markets
