Putin May Spark $30 Crude Oil, Risks Another 80% Drop- Bloomberg Report
Oil's Possible Pain is Bitcoin's Eventual Gain
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Oil's Possible Pain is Bitcoin's Eventual Gain
Putin May Spark $30 Crude Oil - Risks of Another 80% Drawdown
The crude oil market is likely to mirror past reversion patterns from elevated prices. Brent crude has dropped about 80% on three occasions since the 2008 peak. It's possible that Russia's invasion of Ukraine triggers global recession and accelerates electrification and decarbonization trends
Bloomberg Intelligence’s Mike McGLone put out a note yesterday building upon a previous report of his focusing on Oil with an interesting newcomer to that analysis- Bitcoin. First let’s update Oil.
In the report he focuses on the historical precedents governing Oil price reversion. For example, the report notes the massive draw-downs in Oil prices at previous moments in time when Oil climbed to stratospheric highs. Many of our own readers are familiar with parallels to the market behavior post 2008 Beijing Summer games.
In 2008, it was reported that "the 2008 Beijing Olympic Games will boost China's rampant demand for energy, threatening to push world oil prices beyond current record heights, according to industry analysts".
Back then BNP Analysts said:
"In the lead-up to the Games you are going to see pretty heavy spending in infrastructure - building roads, residential property, hotels - and this is typically energy intensive," said BNP Paribas analyst Harry Tchilinguirian.
Crude prices surged as a result to strike a record high above 130 dollars per barrel, boosted by tightening supplies, under-investment in global production and ongoing unrest in key producer Nigeria. And then it washed out Sound familiar?
