If the supply cuts drive up oil prices and inflation expectations this will complicate the delicate balance act for central banks amid the banking crisis.
OPEC+ defends its surprise supply cut as being aimed at oil market “stability.” One can only imagine the glum faces as they realised they had instead teed-up an 8 per cent price spike. Oh well, at least the extra money will offer some small consolation.
This is the second jolt from OPEC+ in the space of six months. Last October’s was done when oil was already above $90 a barrel and drew accusations of implicit meddling in US midterm elections.
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Washington Post
Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. Connect with Liam on Twitter.
