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I have just re-read Zoltan's piece called "Oil, Gold, and LCLo(SP)R"....Here's my little summary:
Regardless of fundamentals, global banking reserves are not in danger of a liquidity crunch or default. This is because there are enough emergency backstops in place to essentially bail out anyone that gets into trouble by printing more reserves.
This is not the case in energy markets. Global demand for oil exceeds supply. The US and OPEC+ do not produce enough oil to supply the west. The Biden administration has been relying on the SPR to artificially lower oil prices and meet demand.
