The impact of rising oil prices

This podcast episode discusses the recent surge in oil prices and its implications for the global economy. The main drivers behind the price increase are the high demand for oil during the summer and the extended supply cuts by OPEC, particularly by Saudi Arabia and Russia. As a result, crude oil prices have risen by approximately 30% and are expected to reach $100 per barrel. This forecast is based on the anticipation of a decrease in OPEC supply and stronger-than-expected demand, leading to a decline in global oil stocks. While higher oil prices may contribute to higher headline inflation, they are unlikely to derail the forecast for a soft landing of the US economy. The focus is now on monitoring Russian supply, Chinese demand, and the US rig count to assess future developments in the oil market.