Oil prices could go ‘parabolic’, putting global economy in ‘critical situation’
We have got a critical situation. I really think we have a problem for the next six months…once it gets to these parabolic states, markets can move and they can spike quite a lot, says Trafigura chief.
Wars, he said, “have unintended consequences and this happens to be within the commodity markets of the world wheat, oil, gas and stuff like that which, in my view, will continue. We’re not taking the proper actions to protect Europe from what’s going to happen in oil in the short run and we’re not taking the proper actions to protect you all … it almost has to go up in price.”
“If we see very high energy prices for a period of time we will eventually see demand destruction,” he said. “It will be problematic to sustain these levels and continue global growth.”
Follow & share @TransAmericanFriendship
