Drill pickle: oil prices still misjudge shock
4/30/202620 min
Oil prices are at their highest since 2022, as a swift end to the Iran conflict proves elusive. Yet, our commodities editor says, markets do not yet yet recognise how deep the supply shock is. Who will contest next year’s pivotal election in France? And great expectations in Brazil ahead of the World Cup.
Watch “The Insider”: How high will the oil price go
Guests and host:
- Matthieu Favas, commodities editor
- Sophie Pedder, Paris bureau chief
- Jon Fasman, senior culture correspondent
- Rosie Blau, host of “The Intelligence”
Topics covered:
- Oil, Brent crude, OPEC, Iran, UAE
- France, Macron, Marine Le Pen, National Rally
- World Cup, Brazil, Pele
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Transcript preview
First 90 secondsSpeaker 0· Soundbite0:00
[instrumental music] The Economist.
Rosie Blau· Host0:04
[instrumental music] Hello, and welcome to The Intelligence from The Economist. I'm Rosie Bloor. Today on the show, who will stand in France's pivotal presidential election, and Brazil's chances at this summer's World Cup. [instrumental music] But first, oil prices have hit their highest level since 2022. The price of Brent crude, the global oil benchmark, passed $125 a barrel as hopes for a swift end to the conflict in Iran evaporated. This week too, the United Arab Emirates announced it was leaving OPEC, the oil cartel that theoretically keeps prices and supplies stable. The sustained blockage of the Strait of Hormuz, through which roughly a fifth of global oil consumption flows, once seemed unimaginable. Now we're experiencing the biggest supply shock in the history of the oil market. Yet high as prices are today, they may not yet reflect that reality.
Mathieu Favas· Guest1:25
If you look at oil prices, you wouldn't really believe that we are on the brink