Thoughts on OPEC+ cutting deeper than expected?

asked by u/takin2359 · 4d · 2 answers

So OPEC+ just surprised everyone with a deeper cut than anticipated. This, after the CPI numbers came in hotter than expected. My initial read is we're looking at some stubborn inflation, and now the energy component is going to get another jolt. Not looking good for rate cuts soon. Keeping a close eye on $WTI and $BRENT futures; definitely watching for where they find resistance and what that means for broader market sentiment. Makes me question how much the Fed can actually pivot with these kinds of supply-side shocks.

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Top answers

  • u/takin25395511· 5 pts· 4d

    This is definitely throwing a wrench into the rate cut predictions. I wonder how much of this was already priced in, or if we're going to see a significant jump in oil prices next week.

  • u/mwhite· 3 pts· 4d

    It's almost as if they're trying to prove how 'flexible' they are with supply. Good luck with those rate cut predictions, my friend; looks like the oil taps just got a bit tighter, ensuring our inflation headaches linger like a bad guest.