Last week, WTI for November delivery passed the $76 a barrel mark. And since September, speculation has been rife that oil could top $100 a barrel in due course. If oil prices do continue to rise, that's going to have very different effects for the US and Europe, increasing the divide in economic fortunes and fuelling greater policy divergence.
The big picture
OPEC’s reluctance to increase output at the behest of the Trump administration and signs of accelerating supply losses from Iran have combined to create a bullish mood. No one is going to be able to fill the gap left by Iran as the Trump sanctions regime tightens. Moreover, the economic crisis in Venezuela has left that country ill-equipped to maximize oil production. And at present, the Category 4 Hurricane Michael has already disru...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.