- March 28, 2022
- Posted by: Bastion team
- Category: World News
This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe
Monday, March 28, 2022
Almost any direction you look, it points to higher oil prices and a potentially damaging effect on the global economy — one the market will have to factor in once and for all.
To be sure, the stage is set for a renewed push higher in oil prices after a momentary relief sell-off.
President Biden’s “cannot remain in power” comments with respect to Russian President Vladimir Putin at this weekend’s NATO meeting will likely be seen as bullish oil prices.
Then there is the delayed domino effect of harsh sanctions by the West on Russia beginning to infiltrate through the oil markets.
“Major energy companies and commodity-trading houses balked at buying crude oil from Russia in the days following the invasion of Ukraine. Banks also stopped financing these trades, shippers refused to load cargoes and insurers stopped covering them, fearful of running afoul of sanctions or upsetting company stakeholders,” The Wall Street Journal writes.
As one would expect, oil prices at such elevated levels will hurt corporate profits — perhaps big-time. Let’s use tech giant Amazon — which operates large oil-sucking distribution centers and an army of gas-powered trucks (until Rivian delivers the company thousands of EVs in 2040)…