The oil collapse

Foreign Affairs/Daniel Yergin/4-2-2020

“The nature and sheer scale of the current collapse and the geopolitical wrangling it has prompted present unique challenges for the United States and its energy sector—challenges that will have significant consequences for the U.S. economy and U.S. foreign policy in an already perilous moment.”

USAGOLD note:    For those looking for a quick read on the inside workings of the global oil market and what the future might hold, the widely-respected Daniel Yergin offers much food for thought in this reasonably short essay. As the oil collapse unfolded [down almost 52% year to date] dragging down the entirety of the commodities complex with it, gold held its own [up almost 6%] – showing its mettle as a hedge against the systemic risks oil’s collapse might portend.

Chart courtesy of TradingView.com