Another day, another ramp job. Yesterday’s oil and gas price recovery wasn’t enough to help stocks break out. But, VIX’s dip below horizontal support was more than up to the task.
There’s just one problem – inflation. Ignore the seasonally-adjusted PPI poppycock and look beneath the hood. Petroleum products rose 21.7%. That was an understatement, but at least closer to reality.
A casual glance at crude prices reveals the YoY difference was closer to 30%. The real problem comes next month, where the YoY delta is currently tracking 42%. Then, there’s June. The average price of $45/barrel is about 55% below current prices.
In that light, yesterday’s decision to ratchet up tensions with Iran — the world’s fifth-biggest oil producer — spells economic trouble.
continued for members…
Sorry, this content is for members only.Click here to get access.
Already a member? Login below… |