Fed warns of ‘some pain’ ahead as it fights to bring down inflation
August 29, 2022
OPEC plans to discuss a cut to production in their next meeting on September 5. I think the only way they scale back is if the Iran nuclear deal get done.
The Baker Hughes Rig Count had oil rigs were up 4 oil rigs to a total of 605 and last year at this time there were 485.
The equities markets got sold off on Friday after Federal Reserve Chairman, Jerome Powell, said the Fed will remain aggressive in trying to reduce inflation. He also warned that it will be sometime before inflation is under control and this will mean slower growth and a weaker job market, and he also warned of some pain for households and businesses. The selloff in stocks was supportive to oil price as the energy market were up.
Also supporting energy price was comments that Saudi Arabia and the UAE are aligned in supporting prices by additional oil output cuts should prices fall below $90 if Iranian oil comes back into the market.