After a momentous rally this year, it looks like oil prices are finally coming under pressure - with the threat of inflation dampening oil market optimism.
The months-long oil price rally hit the pause button this week, following a shift in outlook from the U.S. Federal Reserve. “Inflation is your friend until it isn’t,” Louise Dickson of Rystad Energy said in a statement. “The oil market is re-learning this lesson in the past two trading days after the US central bank hinted at potential interest rate hikes in 2023, which would make oil more expensive in non-dollar denominated economies and could damper demand.”
$100 oil looking more likely. Many oil traders see oil remaining above $70 per barrel for the foreseeable future, with $100 oil no longer an impossibility.
Oilprice