China’s covid infection numbers are bigger than anything the world has seen. Some say a dangerous new variant could or already has emerged to threaten the whole world.
Even as perhaps 37 million people have been infected on a single day this past week, China’s government is saying its U-turn on its “covid-zero” policy was a victory and expects a quick return to economic growth.
Crude oil and soybeans had a good week as talk of Russia cutting their oil production in retaliation to the G7 price cap on Russian exports. However, this China covid thing could crush crude oil prices $10 to $20 if the marketplace begins to think China will return to zero tolerance or the sickness itself will drastically slow the economy. We are not predicting that, but the danger is very real.