I marked the crisis in Russian energy for global prices last week. But the US cutting off Russian oil on Tuesday was the top.
The reasons it was the top?
Russian energy supplies are going on elsewhere on the globe for now and until there is much more supply gradually introduced from other countries US included.
The fears over losing Russian energy are abating.
The central bankers around the world are tightening their respective money supplies. This always drives down commodity prices.
What does this mean? The premiums around all energy companies are leaving the marketplace.
How long till such premiums reappear? Who knows. But not next Tuesday, not for the foreseeable future, it can take many months or many years for a deep energy shock to reenter the markets.
Am I wrong? Tell me…
Do not rely on the longer term supply and demand charts. Those are a moot point.