And now for something completely different and to help you all sleep soundly at night … Oil back to $55 a barrel … whilst that requires a recession, it would sure as hell knock inflation on the head lol … Dex
https://www.marketwatch.com/story/oil-at-55-why-one-strategist-is-betting-against-the-only-winning-asset-class-of-2022-11656586013?mod=home-page
[[[ … there has never been a recession in which oil prices did not collapse, even in the stagflationary 1970s, as they fell 25% in 1974. The declines are particularly steep since oil prices also tend to rise ahead of slowdowns, tipping already fragile economies into recession.
| Year | Oil price drawdown |
| 1974 | -25% |
| 1981-82 | -30% |
| 1990-91 | -60% |
| 2000-01 | -55% |
| 2008 | -75% |
| 2015 | -60% |
| 2020 | -75% |
| Source: BCA Research |
Coming back to 2022, Joshi says applying the median drawdown in the last six recessions, of 60%, to the peak of $130, means oil will plunge to $55. ]]]
