00:00Cavendish adds that at over US$100 a barrel, oil prices are well above what's considered stable for the global
00:07economy.
00:08He warns the effect could ripple far beyond the pump.
00:13So a stable oil environment which encourages investments but is relatively affordable by the international community is seen to be
00:20in the $60 to $80 a barrel range.
00:23Now we're well outside of that range and the market can withstand that for a short period of time.
00:30But if it's prolonged, it will start to have inflation impacts, not just at the bowser when one goes to
00:36fill up your car, but it filters through to nearly every other part of the economy.
00:39And that's going to put upward pressure on inflation globally.
00:42See reserves banks having to take mitigation measures in that regard.
00:47There's a reason that Iran is pursuing this strategy of weaponizing energy and causing a global energy crisis, which could
00:56in turn cause a global economic crisis and put political pressure on some of the actors here.
01:02You know, that is a very deliberate strategy on that part.
01:05But I think what you'll want, what the US will want to see is make sure it doesn't reward Iran's
01:11strategy here of weaponizing global energy.
01:14I think many of the parties in the Middle East, including some of the Gulf states, also don't want to
01:21be seen to be rewarding this kind of belligerent behavior on the part of Iran and won't let them use
01:27energy as the weapon that they want it to be.
01:33Bye.
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