Having said that, if Crude Oil can break above $110 and stay up there for longer, then there could be another leg higher. Which would mean higher oil prices are here to stay for longer...and in such a scenario, stagflation outcome becomes very probable, higher rates will be higher than what markets are expecting and stay higher for longer...and a deeper recession will be on the cards...and that would be disastrous for equity markets in general. And under such a scenario, the entire equity markets including oil stocks would likely collapse, which then cause a collapsing oil price market, just like how it panned out in 2007-08.
