Last week the price of oil was skyrocketing; this week-crashing. Oil managed to enter bear market in 5 days.
In this video I discuss what the gloom and doom people rarely mention: cycles. What goes up very quickly usually comes down equally as fast. Nothing in markets is every a straight line. We might experience volatility for a while. However, if economic conditions are facing major headwinds, high oil prices (gasoline) will not last. History shows that the economy simply cannot handle oil at these levels.
▶️ 3Speak
I do not feel secure when the prices of commodities fluctuate like altcoins. The recent crash in the price of oil was an indicator of something worse for the whole economy IMHO. Nowadays, I really have difficulty in finding a safe spot to preserve my purchasing power in fiat.
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Yeah commodities can be volatile and a war doesnt help. However, we know they do not go up forever. There were calls for $300 oil in 2007, a level never reached. Hysteria always rules the day.
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Wow,this is very bad,only God that can help us in this world.since the price of petrol is high now , majority of people will suffer for it. Because many countries depends on it.
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There's never a stable price right from time because it fluctuate and the only hope we have is to experience it favourable to us
That makes a lot of sense, whatever goes up must goes down. Had I knew that since I got in crypto, I'd be better positioned now... But wait, I did, I just didn't paid attention to market sentiment, same as many are doing now with oil. It's annoying as hell knowing that oil has gone down by over $30 a barrel, but gas at the pump is still as high as it was when oil was valued at $130. Moreover, it's even more annoying that gas stations are speculating on this although we don't actually import oil from what I know, so why the heck to they correlate prices with barrel of oil?
It makes me wonder why the prices go up so fast but drop so slowly. Is it because they have already paid higher prices for the existing stock or is it to take advantage of the consumers? I find that to be kind of true in all industries.
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Huge price shifts all around. I have to say even worse than that of crypto so that whole volitivity thing they keep throwing at Crypto is the same thing that happens in commodity and stocks. Oil went from $123 down to $95 in the matter of just 7 days that's huge!
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That is very true. Generally, that is what happens when any product rises very fast, it regularly falls just as fast, and nothing is maintained over time. In addition, the war between Russia and Ukraine has favored this new increase in the price of Oil.
People are like sheep and we have seen another example these days. My view on all these extreme movements is that industries will need to adapt and seek new tech to provide lower-cost, tech that maybe was avoided for a too long time. Let's see if the electric car revolution will boom this year, alongside other energy production alternatives. I sure think that the time for change is now!
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Summary:
In this episode, the speaker discusses the recent collapse in oil prices, dropping from $130 a barrel to $95 a barrel. He explains how this drop affects various industries and consumers, noting that high oil prices lead to increased costs for companies and service providers, ultimately impacting individuals' wallets. The speaker emphasizes the cyclical nature of markets, highlighting how rapid price increases often lead to equally quick collapses. He cautions against the belief that markets only move in one direction and stresses the potential economic impacts of fluctuating commodity prices.
Detailed Article:
The speaker delves into the recent plummet in oil prices from $130 a barrel to $95 a barrel, attributing this decline to a variety of factors such as the Russia-Ukraine conflict and economic implications. He illustrates the challenges faced by retailers, especially in the gasoline industry, who are slow to adjust prices downward due to inventory bought at higher levels. This delay in passing on cost savings to consumers can strain budgets. The speaker points out that such price fluctuations are not unique to oil but impact other industries like lumber, indicating a broader economic ripple effect.
Moreover, he discusses how high oil prices affect various sectors such as delivery companies, airlines, and commuting individuals, whose costs inevitably increase, potentially leading to adjustments in pricing for services. The speaker also touches on the gold market, noting its recent pullback after a surge, highlighting the need for vigilance in anticipating market movements in both commodities and economies. He emphasizes that markets do not move unidirectionally and underscores the cyclicality inherent in commodity prices and economies, advising listeners to consider historical trends.
The speaker raises concerns about economic headwinds posed by the oil price drop, cautioning against excessive optimism or pessimism regarding market trajectories. He warns against gloom and doom predictions and advocates for a pragmatic approach to market analysis, stressing the inevitability of market cycles. Additionally, he alludes to potential repercussions in the event of a severe economic downturn, suggesting that sustained elevated commodity prices are unlikely in such scenarios as people adapt to changing circumstances.
In conclusion, the episode provides a comprehensive analysis of the recent oil price collapse, highlighting its implications for various industries and consumers while emphasizing broader economic considerations and the cyclical nature of markets. The speaker's insights serve as a reminder to carefully navigate market fluctuations and remain attuned to changing economic landscapes.