here's another angle. We're already seeing rampant surges in food prices like soy, corn, wheat, sugar, coffee, etc. There's going to be a shitload of food inflation in 3rd world countries and Arab states. This will cause the government to try and do price controls and rationing which will cause shortages. This sparks off civil unrest and possibly civil wars in oil producing countries.
I believe it. Governments love price controls when it wins them votes. Despite the failures created from rent control, it's still a thing.
India used to have very tight price controls and monopoly laws; so tight that when the government laxed them and reintroduced competition into their economy, the existing players were blindsided by how much better their competition was and were forced to modernize.
here's another angle. We're already seeing rampant surges in food prices like soy, corn, wheat, sugar, coffee, etc. There's going to be a shitload of food inflation in 3rd world countries and Arab states. This will cause the government to try and do price controls and rationing which will cause shortages. This sparks off civil unrest and possibly civil wars in oil producing countries.
There's your case for 200 dollar a barrel oil.
I believe it. Governments love price controls when it wins them votes. Despite the failures created from rent control, it's still a thing.
India used to have very tight price controls and monopoly laws; so tight that when the government laxed them and reintroduced competition into their economy, the existing players were blindsided by how much better their competition was and were forced to modernize.