West Texas Intermediate is jumping much higher this morning as Saudi Arabia announced an extended production cut through at least the end of 2023.
While I don’t normally watch oil prices too closely a jump to over $86/barrel gets my attention. If prices stay this high–or higher it will feed through the inflation numbers at some point in time and of course we will see it at the gas pump much quicker. No doubt high prices at the pump feed through to consumer confidence fairly quickly.
Let’s see if these spikes continue – of course we would welcome a little economic slowdown, but don’t need prices at the pump to be the cause.