Could Higher Oil Help? | The Big Conversation
Last week OPEC+ made the decision to cut oil production and it had the desired effect, a higher oil price. But couple this will less ammo from the Strategic Petroleum Reserve post midterms in a month, and we could see oil grind higher into year end. Now, the question is how this affects the consumer and therefore the Fed’s next moves. If higher oil leads to job losses and resets wage expectations for the private sector then it could, in fact, help the Fed. The Fed must tackle wage inflation too, and it just might be oil that buys them more room to move.
David Rickard, Director of Trading Solutions, LSEG
Jamie McDonald, Refinitiv
Roger Hirst, Independent Macro Analyst, Co-Head of Content, Real Vision Group