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