Let’s jump into the impact of banning Russian oil and how high oil could go!
[00:01 – 11:00] Opening Segment
- An overview of rising oil prices
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- The impact and implication on the economy
- Neal shares his insights about the great 2022 oil shock
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- How it’s going to affect positively and negatively the real estate market in Canada and USA
- Check our previous interview with Neal Bawa
[11:01 – 31:27] Impact of Banning Russian Oil & How High Oil Could Go
- The importance of understanding the demand for flexibility
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- A 5% reduction in world supply easily leads to a 50 to 100% increase in price
- Neal shares three different scenarios where real estate can be impacted due to oil prices
- What if the USA stops buying Russian oil
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- A decline in the stock market
- A rise in the interest rates due to immediate inflation in the economy
- A financial contagion
[31:28 – 46:15] Impact of Banning Russian Oil in Real Estate
- Consider a scenario where Russian is no longer able to sell oil
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- There’d be a hyperinflation
- Neal explains the role that China and India have in buying Russian oil
- Neal provides scenarios of what investors could consider if there’s an economic crisis
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- Amounts of liquidity will come into the world economy
- The consequences of the 11th largest economy in the world becoming insolvent
[46:16 – 49:41] Closing Segment
Connect to Neal Bawa on LinkedIn! Go and check out Multifamily University if you want to learn more about his thoughts on this oil shock.
