Oil volatility probes the downside

Thursday, 30 June 2022

This is an essential breakdown before any Fed pivot. Recent price volatility has been leaning to the downside so we are getting there barring any further supply shocks. The Fed needs sub-$80 oil and preferably sub-$60 because it’s going to pop the moment it flips. Any lower would shut off US which it will not want to do. Barclays with the note.

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Trade growing oil downside risk on escalating recession fears

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.