{"id":58455,"date":"2021-07-02T07:16:56","date_gmt":"2021-07-02T12:16:56","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58455"},"modified":"2021-07-02T07:19:01","modified_gmt":"2021-07-02T12:19:01","slug":"unstoppable-oil-could-be-nail-in-coffin-for-stocks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58455","title":{"rendered":"Unstoppable Oil Could Be Nail In Coffin For Stocks"},"content":{"rendered":"<header class=\"ArticleFull_header__11o5_\">\n<h3 class=\"ArticleFull_title__2cUI6\"><a href=\"https:\/\/www.zerohedge.com\/commodities\/unstoppable-oil-could-be-nail-coffin-stocks\">Unstoppable Oil Could Be Nail In Coffin For Stocks<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__38L44\">\n<div class=\"NodeContent_body__2clki NodeBody_container__1M6aJ\">\n<p>Stock investors worried about inflation should pay close attention to the rising price of oil. It could be the final kick needed to derail the consumer-spending spree behind the U.S.\u2019s surging growth. From groceries to housing materials to gasoline, life is getting expensive for the average American, even those lucky enough to hold on to their jobs through the pandemic.<\/p>\n<p>Take food. In the last six months alone,\u00a0<strong>the\u00a0Bloomberg Agriculture Subindex\u00a0has risen 20% &#8212; a margin not seen since 2010-2012.\u00a0<\/strong>That was when the world\u2019s supplies were roiled by a series of global weather events, including a severe U.S. drought and a massive Russian\u00a0fire\u00a0that destroyed some of the nation\u2019s grain crop. Countries where bread is a staple, like Egypt and Tunisia, were hit badly. Geopolitical\u00a0analysts say\u00a0it helped set off the Arab Spring.<\/p>\n<p>Not that anything so dramatic seems to be building up. But it\u2019s worth realizing the real-world consequences of climbing raw material prices like we\u2019re seeing right now.<\/p>\n<p>Oil prices have returned to levels last seen in 2018 before the trade war with China began. In the first half of 2021, oil rose 45% on the heels of a gain of some 26% in the six months before. It\u2019s now around $75 a barrel and strategists and trading houses are predicting it will hit $100. As much as it may help producers, it\u2019s bad news for consumer-driven economies like the U.S.<\/p>\n<p>That\u2019s where it matters for stocks. Consumer spending is already moderating and the effects of the fiscal stimulus will likely roll off by\u00a0September-end. Rising prices from groceries to gas will likely result in less spending and traveling.\u00a0<strong>And that means less revenue &#8212; and likely earnings &#8212; for many segments of corporate America.<\/strong><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Unstoppable Oil Could Be Nail In Coffin For Stocks Stock investors worried about inflation should pay close attention to the rising price of oil. It could be the final kick needed to derail the consumer-spending spree behind the U.S.\u2019s surging growth. From groceries to housing materials to gasoline, life is getting expensive for the average [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1849,30512,592,2443,4318],"class_list":["post-58455","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-financial-markets","tag-kriti-gupta","tag-oil-price","tag-stock-markets","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58455"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58455\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}