USD: Relative insulation from commodity turmoil – Rabobank

Rabobank’s Senior Global Strategist Michael Every argues the US and broader Americas are relatively shielded from the latest commodity and Oil shock due to energy and commodity self-sufficiency. He discusses how potential US policy choices on Oil exports and LNG, plus secure fertilizer and helium supplies, could leave the US economy and, by extension, the Dollar less vulnerable than Europe and parts of Asia.

US seen less exposed to shock

"Alhajji takes this further to note that the US is *relatively* less impacted by the tidal wave of economic and market chaos heading our way: the US (with the Americas) is relatively energy self-sufficient: what if the US were to stop exporting oil, its historic policy norm, to bring WTI down sharply, for example?"

"Likewise, US LNG is now the lowest risk global choice: who will trust the Gulf as a secure provider again unless the entire region is brought under a true Pax Americana?"

"The US, with the Americas, is also self-sufficient in many commodities being choked off directly or indirectly via Hormuz."

"That includes fertilizer, which means US and LatAm food supplies could remain secure when others’ aren’t."

"It also includes helium, which allows for the manufacture of semiconductors, when others may be about to fall short."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)