🚨 Oil just got hit with a serious supply shock.
Brent crude dropped below $100 while U.S. WTI fell below $90 as European countries discussed releasing emergency fuel reserves.
The move comes after the U.S. pressured France and Germany to release diesel stocks, with Washington even threatening a potential U.S. diesel export ban if Europe doesn't help increase supply.
A French proposal now being discussed would see European countries release around 50M barrels of diesel, while IEA members could release another 50M barrels of crude.
That's a lot of potential supply hitting a market that has been dealing with serious energy disruptions.
Personally, I think the crypto angle here is more interesting than the oil headline itself.
Lower energy prices can take some pressure off inflation expectations.
And if the oil shock starts fading, that could eventually give central banks a little more breathing room on the rate side.
That's important for Bitcoin because one of BTC's biggest macro problems right now has been the combination of expensive energy, sticky inflation and elevated yields.
But I'm not calling the oil problem solved yet.
Middle Eastern supply risks remain, and physical energy markets are still tight. Reuters reported that Barclays has even raised its Q4 Brent forecast to $115 despite today's decline.
So I'm watching whether Brent can stay below $100.
If it does, the inflation narrative could start changing quickly.
And that could become a much bigger catalyst for risk assets than this one day oil dump suggests.
$BTC #Altcoin Season# #BTC Price Analysis#
$XAUt
Brent crude dropped below $100 while U.S. WTI fell below $90 as European countries discussed releasing emergency fuel reserves.
The move comes after the U.S. pressured France and Germany to release diesel stocks, with Washington even threatening a potential U.S. diesel export ban if Europe doesn't help increase supply.
A French proposal now being discussed would see European countries release around 50M barrels of diesel, while IEA members could release another 50M barrels of crude.
That's a lot of potential supply hitting a market that has been dealing with serious energy disruptions.
Personally, I think the crypto angle here is more interesting than the oil headline itself.
Lower energy prices can take some pressure off inflation expectations.
And if the oil shock starts fading, that could eventually give central banks a little more breathing room on the rate side.
That's important for Bitcoin because one of BTC's biggest macro problems right now has been the combination of expensive energy, sticky inflation and elevated yields.
But I'm not calling the oil problem solved yet.
Middle Eastern supply risks remain, and physical energy markets are still tight. Reuters reported that Barclays has even raised its Q4 Brent forecast to $115 despite today's decline.
So I'm watching whether Brent can stay below $100.
If it does, the inflation narrative could start changing quickly.
And that could become a much bigger catalyst for risk assets than this one day oil dump suggests.
$BTC #Altcoin Season# #BTC Price Analysis#
$XAUt
