Mario and I discussed the escalating tensions in the Middle East, the draining of the U.S. Strategic Petroleum Reserve, oil market manipulation, and China’s surprising role in keeping prices low.
On Reinvent Money, we discussed the puzzling state of oil inventories and prices, potential market interventions, the situations in Ukraine and the Middle East, gold’s behavior, and broader economic risks ahead.
Something that has been puzzling me for the last month or so is the Aluminum futures market. Aluminium in London has returned to a normal, undisrupted state, with pre-war prices, and even a little contango up front. A little odd given the damage, but OK. But the Comex futures are in severe backwardation. I watched someone cross to the $250 for rolling short July to short August. That’s right, someone just paid 8% to rent Aluminum for one month.