QQQ - Oil Price Shock 2024: The Path To $300

2024-04-16 14:30:52 ET

Summary

• Global oil supplies are extremely vulnerable -- more than most people realize -- in the event of war and/or other geopolitical acts.
• The disruption of key global transit choke points, such as the Strait of Hormuz, Suez Canal, and Bab el-Mandab, could severely impact global oil supplies.
• Attacks on oil export infrastructure, in Saudi Arabia and elsewhere, could also cause massive disruptions in global oil supplies.
• A major disruption of global oil supplies can cause global oil prices to rise to $300 and above for a prolonged period.

In 1973, the price of crude oil rose from below $3.00 per barrel to almost $12 per barrel. This quadrupling (+300%) of the crude oil price occurred as a result of the “Arab Oil Embargo.”

We believe that events in 2024 could potentially produce an oil price shock of equal or even greater magnitude....

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