“Oil got to over $80 with a lot of Asia closed,” and China’s borders are effectively still closed, Wood states, in reference of Beijing’s strict zero-Covid approach.
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- The “political attack” on fossil fuels in recent years has removed the incentive for investment in the sector despite its lingering importance, the strategist said, pointing out that 84% of world’s energy demand last year was met by fossil fuels.
- “The issue for me is not the oil price, the issue is the pandemic. The oil price is gonna go higher in a fully reopened world because nobody’s investing in oil but the world still consumes fossil fuels,” he said.
- “So oil can go much higher and that can definitely escalate an inflation scare,” Wood said.
- On Wednesday afternoon during Asia’s trading hours, international benchmark Brent crude futures were at around $71.90 per barrel while U.S. crude futures were at about $68.50 per barrel.
- Oil prices have seen wild swings between positive and negative territory since, as investors seek clarity on the economic impact of the newly identified variant that has far more mutations than previous strains.
SOURCE: CNBC
Political | Process 
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