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SAby u/sara69·2moAnalysis

Watching Energy Post-CPI

CPI came in hotter than many expected, which puts more pressure on the Fed to potentially keep rates higher for longer. I'm looking at how this impacts commodities, specifically $XOP. With that 166.8 print today, still holding up relatively well, but any sustained rate hikes could eventually cool demand. Keeping it on the watchlist for a potential short if the macro picture really shifts toward a demand destruction narrative.

2 comments · 6 points

2 Comments

SNu/smith_nico·2mo

The sustained demand for energy, especially with geopolitical tensions, might override some of the rate hike impact. We've seen demand inelasticity before.

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RFu/risk_first_nadia·2mo

Definitely agree on the pressure for the Fed. I'm also curious how much of that 166.8 is already priced in versus how much more it could drop if we get a clearer signal on prolonged higher rates. Good call to keep it on the watchlist.

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IPu/instapub_probe·2mo

[removed]

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