Why It’s ‘Higher for Longer’ in the Oil Markets

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] oJoin me at 2 p.m. ET on Thursday to learn how higher oil prices impact the global economy — [and how we can trade it](. Why It’s ‘Higher For Longer’ in the Oil Markets Dear Fellow Trader: In the global economy, nothing matters more than the procurement and security around oil. Oil is the lifeblood of the global economy. The economy was built around oil… not the other way around. This is why it will be so difficult to transition away from cheap, potable oil in the future. It powers our cars, heats our homes, and hums our supply chains. So, when the price of oil increases, it dramatically impacts our way of life — both at the micro and macro levels. Today, I want to explain how oil prices impact every part of your world. And show you how you can take advantage of elevated crude prices in today’s environment. Impact No. 1: Your Pocketbook Oil prices instantly impact your discretionary spending. When gasoline and diesel prices rise — both byproducts of oil refining — it will affect your daily expenses. Not only will it be noticeable in the cost to fill up your gas tank, but it will also impact the price of goods that are transported to stores around the country. When oil prices are higher for a sustained period, it can negatively impact consumer spending, which is roughly 70% of the U.S. economy. Impact No. 2: Inflation Rising The Federal Reserve is fighting a difficult battle against inflation that it caused. Not only does too much money impact inflation to the upside, but so too does the price of oil. When oil prices are elevated, it impacts almost every facet of the supply chain. Industries that rely on oil and its byproducts, such as petrochemicals and plastics, will see their costs increase as oil prices increase. Businesses pass on these increased costs to the consumer in what is known as “cost-push inflation.” Impact No. 3: Supply Chain Efficiency When oil prices increase, the cost of shipping goods also rises. This can lead to higher costs for companies involved in distribution, which may then be transferred to consumers. This affects not only the cost of goods but also supply chain efficiency. Whipsawing oil prices can affect distribution centers' ability to manage the flow of goods, as upstream pressures cause havoc on suppliers moving goods to and from those locations. Impact No. 4: Global Trade We see right now that higher oil prices drastically impact global trade. Right now, the world is experiencing significant challenges from the limited flow of Russian oil, and challenges fueled by OPEC’s cuts to production. When oil prices rise, exporting nations can benefit from higher revenue. But nations that import lots of crude may run trade deficits due to the higher prices. This situation will impact exchange rates of currencies, altering the global cost of capital. In addition, price shifts have geopolitical consequences, as evident between the United States’ rising challenge to collaborate with Saudi Arabia. Impact No. 5: The Cost of Production Now, here’s something that people don’t think about too much: Rising oil prices can produce rising oil prices, just as more inflation can produce more inflation. Why? Because the rising cost of diesel and gasoline directly impacts the energy-intensive process of producing oil. In addition, these costs move downstream and impact the price of heating homes (higher oil prices lead to higher heating oil costs). Impact No. 6: A Lag on Growth Higher energy prices can act as a dramatic weight on economic growth at the macro level. As noted, increased energy costs move downstream in the economy, driving up prices and weighing on consumer spending. Every dollar consumers spend on fuel is a dollar that doesn’t move into discretionary categories. In addition, it weighs on savings, which are vital to the banking sector for loan origination and economic growth. Slower economic growth can lead to fewer jobs, lower investment and, ultimately, more central bank intervention. Impact No. 7: Investment and Financial Markets This is the most important to us as traders and investors. Oil prices directly impact the equity and bond markets regularly. For three months, the Energy sector has been the top performer while weighing on consumer cyclical stocks and other energy-sensitive sectors. Our favorite stocks, like Blackstone Minerals LP (NYSE: BSM) and Permian Resources Corp. (NYSE: PR), have experienced a resurgence from higher prices across the global economy. Oil is the single most important commodity in the global economy. The world is built around it, and not the other way around. With so much geopolitical tension in the headlines, it’s important that you understand the real economic impact for both you and the markets. I’m hosting an event at 2 p.m. ET on Thursday, Oct. 19, where I’ll outline the impact of higher oil prices on the global economy, and show you exactly how to trade it. [Reserve your first-row seat to the event, right here.]( [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] This War Could Cause a Financial Disaster Worse Than 2008 I just issued my most dire warning yet! The pandemic, the Russia-Ukraine war, the demolishing of refineries here in the states… And now most recently, the war in the Middle East. It’s all feeding [the cause of something even bigger.]( Not only could this event affect you and your wealth… But the stars are aligning for a global crisis unlike anything the world has ever seen… And it’s set to happen as soon as this winter. Many are calling it a crisis even bigger than the 2008 recession… This is extremely time-sensitive... [And the Time to Prepare Is NOW]( [] _______________________________________________ [] Market Momentum is RED Markets could not sustain their momentum, fueling a negative drop Wednesday. There is ample chop right now due to the ongoing pressure applied by rising interest rates. Proceed with caution. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] oJoin me at 2 p.m. ET on Thursday to learn how higher oil prices impact the global economy — [and how we can trade it](. Why It’s ‘Higher For Longer’ in the Oil Markets Dear Fellow Trader: In the global economy, nothing matters more than the procurement and security around oil. Oil is the lifeblood of the global economy. The economy was built around oil… not the other way around. This is why it will be so difficult to transition away from cheap, potable oil in the future. It powers our cars, heats our homes, and hums our supply chains. So, when the price of oil increases, it dramatically impacts our way of life — both at the micro and macro levels. Today, I want to explain how oil prices impact every part of your world. And show you how you can take advantage of elevated crude prices in today’s environment. Impact No. 1: Your Pocketbook Oil prices instantly impact your discretionary spending. When gasoline and diesel prices rise — both byproducts of oil refining — it will affect your daily expenses. Not only will it be noticeable in the cost to fill up your gas tank, but it will also impact the price of goods that are transported to stores around the country. When oil prices are higher for a sustained period, it can negatively impact consumer spending, which is roughly 70% of the U.S. economy. Impact No. 2: Inflation Rising The Federal Reserve is fighting a difficult battle against inflation that it caused. Not only does too much money impact inflation to the upside, but so too does the price of oil. When oil prices are elevated, it impacts almost every facet of the supply chain. Industries that rely on oil and its byproducts, such as petrochemicals and plastics, will see their costs increase as oil prices increase. Businesses pass on these increased costs to the consumer in what is known as “cost-push inflation.” Impact No. 3: Supply Chain Efficiency When oil prices increase, the cost of shipping goods also rises. This can lead to higher costs for companies involved in distribution, which may then be transferred to consumers. This affects not only the cost of goods but also supply chain efficiency. Whipsawing oil prices can affect distribution centers' ability to manage the flow of goods, as upstream pressures cause havoc on suppliers moving goods to and from those locations. Impact No. 4: Global Trade We see right now that higher oil prices drastically impact global trade. Right now, the world is experiencing significant challenges from the limited flow of Russian oil, and challenges fueled by OPEC’s cuts to production. When oil prices rise, exporting nations can benefit from higher revenue. But nations that import lots of crude may run trade deficits due to the higher prices. This situation will impact exchange rates of currencies, altering the global cost of capital. In addition, price shifts have geopolitical consequences, as evident between the United States’ rising challenge to collaborate with Saudi Arabia. Impact No. 5: The Cost of Production Now, here’s something that people don’t think about too much: Rising oil prices can produce rising oil prices, just as more inflation can produce more inflation. Why? Because the rising cost of diesel and gasoline directly impacts the energy-intensive process of producing oil. In addition, these costs move downstream and impact the price of heating homes (higher oil prices lead to higher heating oil costs). Impact No. 6: A Lag on Growth Higher energy prices can act as a dramatic weight on economic growth at the macro level. As noted, increased energy costs move downstream in the economy, driving up prices and weighing on consumer spending. Every dollar consumers spend on fuel is a dollar that doesn’t move into discretionary categories. In addition, it weighs on savings, which are vital to the banking sector for loan origination and economic growth. Slower economic growth can lead to fewer jobs, lower investment and, ultimately, more central bank intervention. Impact No. 7: Investment and Financial Markets This is the most important to us as traders and investors. Oil prices directly impact the equity and bond markets regularly. For three months, the Energy sector has been the top performer while weighing on consumer cyclical stocks and other energy-sensitive sectors. Our favorite stocks, like Blackstone Minerals LP (NYSE: BSM) and Permian Resources Corp. (NYSE: PR), have experienced a resurgence from higher prices across the global economy. Oil is the single most important commodity in the global economy. The world is built around it, and not the other way around. With so much geopolitical tension in the headlines, it’s important that you understand the real economic impact for both you and the markets. I’m hosting an event at 2 p.m. ET on Thursday, Oct. 19, where I’ll outline the impact of higher oil prices on the global economy, and show you exactly how to trade it. [Reserve your first-row seat to the event, right here.]( [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] This War Could Cause a Financial Disaster Worse Than 2008 I just issued my most dire warning yet! The pandemic, the Russia-Ukraine war, the demolishing of refineries here in the states… And now most recently, the war in the Middle East. It’s all feeding [the cause of something even bigger.]( Not only could this event affect you and your wealth… But the stars are aligning for a global crisis unlike anything the world has ever seen… And it’s set to happen as soon as this winter. Many are calling it a crisis even bigger than the 2008 recession… This is extremely time-sensitive... [And the Time to Prepare Is NOW]( [] _______________________________________________ [] Market Momentum is RED Markets could not sustain their momentum, fueling a negative drop Wednesday. There is ample chop right now due to the ongoing pressure applied by rising interest rates. Proceed with caution. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States