Oil inflation is about to swing back. Biden's SPR failure and restocking of tight oil supplies, Iran nuke deal has "frozen" plus Europe's energy price caps will blow out natural gas prices ala pressure on electrical usage, grids failures and blackouts etc.

Oil energy inflation is about to swing back in relentless way, even though the August CPI, came in hot sans costs at the fuel pump going down, overall it showed a moderation of oil/fuel inflation slightly dipping.  However, the oil price trading at $80 to $85 has not been able to show that the U.S. and global economy is slowing down i.e recession.  We are NOT in a recession (yet), however it is at the cusp of the worst stagflation in history as Central Banks seem very much caught in the headlights of inflation, which is now seeing into everything.  Like a contagion.

Three major reasons why oil is heading higher.

• Biden's SPR's (Strategic Petroleum Release) has been a failure, as noted by a report from Bloomberg, Whitehouse officials are looking to restock the drained emergency oil release when the oil price drops under $80.  The only way that this will occur is that the U.S. Dollar goes into orbit and interest rates hit 5% or 8% as the core CPI is now on par with 1978 when rates were 7.49%.  Currently rates are at 2.50%.  A long way to go.

• Iran's nuke deal with the West for oil and lifting of sanctions is about to go belly up.

• Europe's attempt at set price controls for energy use will backfire.  Noted in a recent Goldman Sachs report, it will simply drive demand higher adding to further woes and possible blackouts and widespread grid problems.  The report is primary directed towards the natural gas market, however the correlation to oil markets will have a spill on effect re: rising prices.  

The above chart is my analysis of tight labor conditions within the U.S. with core CPI rising in relation to interest rate/s over a 40 year period.