The MUFG Global Markets Podcast
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The cure for high oil prices is high oil prices: The MUFG Global Markets Podcast
Notwithstanding the stagflationary winds blowing through the global economy, the looming Fed taper, COVID-19 Delta variant risks, oil markets, and broader commodities, have continued to march higher over recent weeks, with Brent oil prices reaching new three year highs just north of USD80/b.
With pandemic inventory buffers exhausted, Ehsan Khoman, Head of Emerging Markets Research (EMEA), believes that supply shortages that spur such high price shocks will be negated by demand elastic destruction as the only option to rebalance oil markets (that is, the cure for high prices is high prices – a self-correcting mechanism). Ehsan contextualises the latest prospects in oil markets and runs through MUFG’s new oil price forecasts for the remaining months of this year and into 2022.
Disclaimer: www.mufgresearch.com (PDF)
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