00:00Oil prices up roughly 50 percent for a barrel of Brent crude since the start of this conflict four weeks
00:06ago.
00:07What does that mean for consumers? What does that mean for global inflation and growth?
00:15Well, you know, prices are the transmission mechanism of any crisis.
00:21So this means that because Brent is globally priced essentially with WTI and Brent,
00:28it means that it's permeating throughout the world and it's a substantive, a very substantive inflationary pressure.
00:38And then when you add to this, you know, gas, gas is up 66 percent in Europe because LNG is
00:45no longer coming through the Straits of Hormuz.
00:48And the Europeans have decided not to buy any gas or LNG from Russia.
00:52So they're really a little bit in a bind.
00:54So you will see the Asians and the Europeans competing very heavily for U.S. LNG.
01:03And that's, again, big inflationary pressures.
01:07The fertilizer, they're up more than 30 percent.
01:10And a lot of the base materials that are produced from oil and gas are up, too.
01:16So we have across the band with the whole industrial sector.
01:20We have a scarcity in Asia, which will be translated, especially when it comes to refined products to Europe in
01:30a few months time.
01:31And we also have to have to have we also have a price shock.
01:36So this is a really, really bad inflationary scenario.
01:40And all I can say is fasten your seatbelts.
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