Well Spent

Another challenge looms for monetary authorities trying to keep inflation under control. Surprise production cuts decided by “OPEC Plus”, which consists of the Petroleum Exporting Organization (OPEC) and major oil-producing countries that are not members. Crude oil prices are on the rise again, and the financial authorities are likely to be forced to make a difficult decision between the risk of a recession (an economic recession), which has already been heightened due to concerns about banks, and concerns about a reacceleration of inflation.St. Louis Fed President James Bullard said high oil prices wereIt may be a little more difficult,” he said. Here are five news items to keep in mind as you start your day.

Complex puzzles

OPEC+’s decision to cut output has prompted central bank officials, who have spent recent weeks worrying about how the financial turmoil will affect their outlook going forward, by warning that oil prices will rise.posed a new problem. “We were starting to see some signs that inflation was normalizing, but now a new problem has resurfaced,” said State Street strategist Maria Beitman. “It is becoming more difficult for central banks,” she said.

$100 in sight again

The OPEC+ decision to cut production has forced us to revise the outlook for crude oil prices, with 1 barrel =$100 is in sight again. The cuts came after OPEC signaled it needed to increase production in the second half of the year, not cut it. The International Energy Agency (IEA) expects demand to surge further this year, and the production cut that caught markets off guard has raised new inflation risks for the global economy. “If they cut into a bullish scenario, they could pass $100 a barrel very quickly,” said Bob McNally of Rapidan Energy Group.

Low level for the first time in about 3 years