The Maverick of Wall Street: Oil Wars: OPEC+ Strikes Back!

Oil is the most-watched commodity in the world. It’s the key to energy markets, even with the recent shift towards renewable energy sources. And like other commodities, it’s prone to big swings for a number of reasons.

First, oil prices spiked this year when Russia invaded Ukraine. Those prices moderated in time, as the global market worked around potential supply issues from the region. Then, prices dipped further following the news that US GDP shrank in the first half of the year.

Now, prices are set to rise again. The Biden White House has been dipping into the Strategic Petroleum Reserve, but is set to end those sales by November.

More importantly, OPEC+, the cartel of oil-producing countries and affiliates, have agreed to a production cut.

Rising oil prices could lead to a further pressure on inflation. That’s because energy prices are a key input for the production and transportation of any physical good.

That also means higher gas prices at the pump. The more consumers spend on gas, the less they have to spend on other parts of the economy.

Plus, some states have far higher gas prices than others thanks to the myriad of taxes that go into a gallon of gas. That could cause some parts of the country to slow down faster than others.

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