But it won’t. And I don’t believe a word of this article based on what I read today.
David Stockman’s analysis was much better and more true to form than the crap being spread out there:
https://www.lewrockwell.com/2022/07/david-stockman/europes-economic-suicide/
Oil prices may down a little now but could go back up and way more than the high.
“ Oil prices may down a little now but could go back up and way more than the high.”
Oil prices have historically swung widely. Boom and bust is characteristic of the industry.
A big factor is the global economy (demand). When recession hits, total demand can drop 10 or 15% (more than Russia’s total contribution to supply).
It looks like widespread recession is near at hand, with bond yield rates inverted, and Central Banks slamming on the brakes to quell inflation, with interest rate hikes like we haven’t seen in about half a century.
As demand drops, there is going to be overwhelming pressure (and widespread consensus) to stick Russia with all the reductions in market share. They are a pariah State because of their conduct in the Ukraine, which has been nothing short of demonic. Many of the World’s major economies now view it as a critical National Security imperative, to ensure that Russia is excluded from oil and gas markets.