The rest of OPEC will eventually come in and fill in for Russia. It's the thing to do. Russia is no longer a reliable source. Saudi Arabia will gain market share and Russia will lose market share that will take years to regain if ever -even after the war is over.
OPEC can't wait too long since the last thing they need is for their largest consumers to go into recession due to high energy prices -not after 2 years of a pandemic. Oil prices will find an equilibrium. They will probably be higher than before the war but not as high as they are now.
This will happen. It will just seem like an eternity since we need them to be lower now.
This article is from 2020. My shares of USO are up over $1000 now. I plan to hold them for less than 1 week though to minimize exposure to management fees and contango. I’m not sure what is a better investment for this right now.
OPEC can't wait too long since the last thing they need is for their largest consumers to go into recession due to high energy prices -not after 2 years of a pandemic. Oil prices will find an equilibrium. They will probably be higher than before the war but not as high as they are now.
This will happen. It will just seem like an eternity since we need them to be lower now.