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> I think you should look into commodity prices. I'm surprised at how many people aren't paying attention to the global game on this. Let's look then at that.
by credit_guy 4y ago
> I think you should look into commodity prices. I'm surprised at how many people aren't paying attention to the global game on this.
Let's look then at that.
Russia produces about 4 billion barrels of oil per year. The various sanctions reduced that, but not by much. I've seen estimates of 10% to 20% decline, although I have also seen lower estimates. The war has been going on for about 4 months, so at a very conservative 20% output decline it follows that they produced 270 million barrels less than last year. At $100 a barrel, that's a shock of less than $30 billion on the supply side. It's much less than that though, since other producers have increased their output.
$30 billion shock on the supply side vs $7 trillion on the demand side...
- guerrilla 4y agoYou missed every other commodity, including a giant one, natural gas where electricity prices have double even in the most self-sufficient European countries and we're at the point of needing to bring back coal in Germany. Then there's the grain, knock on effects on steel and aluminum, nickel, the blocked ports, and on and on. It's a disaster.