In economics, nothing happens in a vacuum. We see things taking place that appear to be in isolation yet we have to search as to what is causing the issue.
In this video I discuss how oil prices are elevated due to rising costs to shale drillers. This is done, in part, due to the increased cost of financing as banks shun them. Uncertainty is a major issue that will likely keep things elevated until their is an economic collapse.
▶️ 3Speak
Oh was this the cause for the increase in prices? I didn't think the banks would be involved and it was more due to the renewable energy push for no oil at all.
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It isnt the sole reason for the increase in pricing but when we get to the supply/demand equation, the fact the shale people are not getting the funding from the banks which affects output.
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Do you think that the new closures due to the pandemic may produce shortages in the medium term when it reopens?
It certainly cannot help the supply chains. Of course, the flip side is it could kill demand.
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