The stock market is already disregarding the story of oil price volatility.

“So that's my interpretation is that the market is already done with this story.”

Oil is currently one of the cheapest assets in the world at sixty dollars per barrel.

“My my favorite asset class right now, what I think is the cheapest one of the cheapest assets in the world is a barrel of oil at 60 bucks in nominal terms.”

The US economy is better equipped to handle higher oil prices than in the past because energy costs constitute a smaller share of consumer spending.

“But the economy is better equipped to handle higher oil prices and so are companies.”

Current oil supply disruptions are not fully reflected in the market yet, and higher prices may be necessary to curb demand.

“At some point, prices have to go higher to curb demand. And that's sort of maybe probably possibly the environment we're entering in the next one or two weeks.”

Oil prices will need to continue rising to drive demand destruction until the market rebalances due to the closure of the Strait of Hormuz.

“we will need to forcibly kind of adjust the market to that level of demand but without a pandemic just via price signals that's why 200 plus is at least I mean the longer this goes on the higher we go”