Putting the attack on Abqaiq, Saudi Arabia in context for Monday

As has now been widely reported, more than half of Saudi Arabia's oil production supply was knocked out Saturday in an attack on Abqaiq oil facilities claimed by Yemen's Iran-aligned Houthi rebel group. Saudi Arabia has indicated it will provide an update on their production situation by sometime Monday.

While oil prices are likely to climb in the immediate aftermath, the more important question is what happens after the initial excitement passes. As Nick Colas from DataTrek Research explains in this August 22nd Real Vision interview, the oil price, not just the yield curve, is an important recession indicator. The interview provides insightful context for the week ahead given the attack.

Nick Colas on the importance of oil as an indicator

With some impressive foresight, he made the case less than a month ago that Energy stocks could provide a hedge against Middle East geo-political risk which might put consumer discretionary stocks (i.e. Amazon) and high flying technology names under pressure if events flare up.

Click here for this timely interview found on INK's Ultra Money. All Canadian Insider users have access to this free episode from Real Vision. INK Research CIA subscribers have full access to all Ultra Money videos including premium content.