Economic Take

Not Your Parents’ Oil Shock

September 24, 2019

The September 14 attack on Saudi oil facilities briefly raised fears of a crippling oil shock like the 1973 OPEC embargo. These reactions, however, don’t reflect the current environment, considering most countries now have a lot more oil sitting in strategic reserves. The US is also the largest oil producer in the world, and despite the slump in new development, crude output recently topped 12 million barrels per day. In other words, one region’s shock is another region’s opportunity.