Oil remains the key driver across global markets, but could Venezuela help cool the pressure? The country is preparing to significantly boost production, thanks to US producers investment. Yet not all oil is created equal. Venezuela’s crude is generally heavier and sourer than many Middle Eastern grades, making it harder and more expensive to transport and refine. So while additional Venezuelan barrels could weigh on global oil prices, they cannot simply replace disrupted Gulf supply.
Meanwhile, elevated energy prices continue to fuel inflation concerns and hawkish central bank expectations. The ECB, BoJ, RBA, BoE and Fed are all facing pressure to keep monetary policy tight.
On a ‘brighter note’, softer US jobs data could offer markets some relief — but for bad economic news to become good news for stocks, oil prices may first need to stabilise.
Watch the full episode to find out more!
Intro1:02 US tries hard to pull energy prices lower...
4:01 ... but central bank expectations remain hawkish
6:49 Soft US jobs data could help relieve some pressure, but there is a sine qua non condition...
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