Will the economy have to get used to oil above 100 dollars?

Will economies have to get used to a barrel of oil above 100 dollars? The sharp increase in inflation to historical levels and the response of central banks to deal with it -with more aggressive and rapid rises in interest rates and the withdrawal of the extraordinary stimuli that were approved in the midst of the pandemic- raises fears of a new recession in the United States and in Europe. “We need to fight inflation because, at the end of the day, inflation is the biggest poison for the economy,” he assured this week Christian SewingCEO of Deutsche Bank, in an interview with the American chain CNBC.

That Recession Fear it has only served to alleviate the cost of a barrel of crude, which has become cheaper by more than 9% in the last two weeks in anticipation that demand may suffer somewhat in Europe (Brent crude, a reference in Europe, stood at 111 dollars at the close of the stock markets on Wednesday). That relief has not moved in no case at the price of fuel, which has continued to rise, canceling in the Spanish case the bonus of 20 euro cents approved by the Government. From the service station sector they do not rule out that it can reach 3 euros per liter this summer. To tackle a problem that also affects the United States, President Joe Biden asked Congress on Wednesday to temporarily suspend the federal tax on gasoline, which has reached $5 per gallon for the first time this month.

In the midst of this situation, the response of the OPEC producing countries and the purchases of crude oil by China are being key in maintaining the price of a barrel. This episode of the ‘Information’ podcast features the analysis of Patricia García Sánchez de la Barredamanaging partner of the market analysis consultancy MacroYieldand with that of Xavier Molinaspokesperson in Spain for eToro.

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Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.

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