[Thinking Power] Background of High Crude Oil: Increasing Risks in the Middle East
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Now, the theme this time isMiddle East situation.
While the U.S. and Japan stock markets are solid, Middle East risks are gradually rising.
As a result, crude oil has recovered to the 55-dollar range.
★ Conflict among Saudi royal family
Prince Al-Walid, well-known among investors, has been arrested
★ Iran’s nuclear development raises concerns for President Trump.
If sanctioned again, there is concern that oil production will decline
★ Iraq production declines
★ Venezuela’s state-owned oil company default concerns
In anticipation of a harsh winter in North America, expectations for higher crude oil prices have emerged.
In such an environment, crude oil prices may move up and down significantly toward the end of the year.
⇒ If the movement is gradual, it supports rate hikes ⇒ Strong dollar
⇒ If Saudi supply is affected and there is a sharp rise, it could negatively impact the economy ⇒ Rate cuts or dollar weakness
Note) The above is my personal view and is intended solely to improve financial literacy. Therefore, it is not created for investment solicitation. Please make ultimate investment decisions at your own responsibility.
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