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MacroVoices #334 Adam Rozencwajg: Understanding the Global Energy Crisis

Macro Voices

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Is the Oil Market Really Different From the Last Recession?

In the oil market, you know, wev have this hyper financialized oil market, where the paper trades here are multiples of the physical market. People have been putting on a recession basket now for the last three, four weeks. And i think that's working its way into the oil markets as well, since you do have so many equity like products that are tied to oil prices and things that nature. We saw the oil prices sell off at the same time as the term structure tightened en,you know, the back gradation increased. I've gone to look back, i can't find an example of that having happened in the past. But one thing that i would tell you

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