Why didn’t oil prices explode after the bombing of the Saudi oil refinery responsible for 5% of global oil?
Recorded on October 5, 2019
On this episode of New Business Paradigms, Academy President and Founder Rinaldo Brutoco and Chief of Staff Kristy Jansen talk oil. Rinaldo riffs on why, following the bombing of oil refineries in Saudi Arabia, the global oil markets appeared unfazed by the loss of 5% of the world’s refined oil. With per capita oil usage dropping and renewable energy sources becoming ever cheaper – especially when considering carbon pricing – oil prices have stayed flat around $53 per barrel rather than jumping to $105 per barrel (as some anticipated). Rinaldo and Kristy then discuss other economic indicators – consumer confidence, job numbers, and gold – before moving on to global economic trends related to tariffs, the African Free Trade Agreement, and the future of flood insurance.
The podcast concludes with a discussion of what government services Rinaldo wants to have in his ideal neighborhood. California has been leading the passage of progressive legislation recently, including notably, a bill legalizing public banking for municipalities across the state. He and Kristy argue that while the state does have a much higher tax rate than other states like Texas or Nevada, the environmental, economic, and community benefits that accrue make California a desirable place to live.