Watch outLast week, investors were spooked by a potential cut in OPEC+ output. Oil prices rose amid fierce warnings made by Saudi Arabia’s energy chief to oil speculators. I would just tell them: Watch out!” These comments signal a potentially large output reduction which may come in the upcoming OPEC+ meeting on June 4. Far-reaching ramificationsIndeed, the world should carefully watch the next actions of OPEC+ as these would have far-reaching ramifications on the global economy. A continued ascent of oil prices would trigger a resurgence of inflation which in turn would necessitate keeping higher interest rates for longer.

Source: Philippine Star May 28, 2023 16:51 UTC