Energy risks plague stocks, oil joins the party – Investing.com

Energy risks plague stocks, oil joins the party – Investing.com

The world’s dominant oil cartel did not accelerate its production increases yesterday, propelling oil prices to new multi-year highs and fanning the flames of the raging energy crisis. With and coal prices going through the roof lately, has joined the party in sympathy as power producers look for any alternatives.

Central banks cannot fix supply shocks - only governments have the tools to intervene.

Subsidies may be the weapon of choice as they would cushion the blow to consumers immediately and negate political turmoil, but that’s not a bulletproof strategy either as it would likely prolong and even exacerbate the pressure on energy markets. There aren’t any easy solutions, hence why investors have one finger on the panic button.