While the Federal Reserve’s rate hikes have helped curb inflation, factors like oil supply dynamics are outside their control. Rising oil prices put the Fed’s attempts to engineer a soft landing for the economy in jeopardy. U.S. oil production fell 3 million barrels per day in response. This imbalance sparked a climb in oil prices that would last for the next two years. ConclusionIn summary, OPEC+ supply reductions are the primary accelerator behind renewed oil price momentum nearing $100 per barrel.

Source: Libya Today October 03, 2023 11:37 UTC