Market Panic Is Here
Market panic is here, according to Rystad Energy’s senior oil market analyst Louise Dickson, who made the comment in a statement sent to Rigzone on Wednesday.
In the statement, Dickson noted that Wednesday’s market situation was extreme “by any measure in historical oil pricing terms”, highlighting that it exhibited the largest ever prompt price premium.
“Investors, traders, and politicians alike are scrambling to address the worsening Russia-Ukraine standoff,” Dickson said in the statement.
“The initial upward price reaction after the conflict in Ukraine started six days ago is only intensifying. The current realistic scenario is that a large portion of Russian crude oil, as well as refined oil products, will no longer be palpable to the market and create a supply deficit for the duration of the armed conflict,” Dickson added.
Editor's Comments
Going to be short here - there is no good news to report and it is starting to look like this could be worse than the 1929 crash because without secure and affordable energy sources it becomes impossible for the economic system to operate. Hyperinflation will cause massive spikes in interest rates and in turn burst the absurd price bubbles that have been created in realty, securities and currency valuations over the past 10 years due to the insanely low Disneyland policy rates administered by the Fed.
Combine that with unprecedented levels of federal debt financing and you have a recipe for utter financial disaster when the ships come in.
Hang on to your hats folks!
T. A. McNeil
CEO Founder
First Financial Insights
How Bad Can It Get?
