With his decision to cut production by a total of 1.16 million barrels per day. OPEC further complicates the work of the Federal Reserve. And maybe not only her fed but also her ECB And her Bank of England and all central banks, as this adds a very strong factor to the further acceleration of prices. She assessment of financial analysts who has seen them since yesterday oil prices picked up again after the decision of the eight countries of the international oil cartel led by Saudi Arabia to cut their production. And in general, decide and act essentially independently, and not as members of OPEC. The market reaction was immediate, with oil prices jumping nearly 6% during yesterday’s session, West Texas crude topping $80 a barrel and Brent above $86 a barrel.

Their decision automatically triggered assessments by analysts and market participants, including Goldman Sachs analysts, for the rapid rise in oil prices to 95 and 100 dollars per barrel. As analysts now point out, from Washington to Frankfurt to London, policymakers and central banks that have struggled for a year to contain inflationary prices will soon face fresh upward pressure on prices just from the cost of oil. According to Victor Ponsford, an analyst at Rystad Energy, “The expected rise in oil prices as a result of production cuts will accelerate energy price inflation and push central banks around the world to raise interest rates more aggressively.”

Of course, in many cases, such production announcements by OPEC end up having only a temporary effect. James Bullard, president of the St. Louis Federal Reserve, doubts the impact on oil prices will be lasting. Speaking to Bloomberg TV, Bullard acknowledged that “this decision came as a surprise,” but stressed that “it’s more of an open question whether the impact on the price of “black gold” will continue.” In addition, Gendiminas Simkus, Chairman of the Bank of Lithuania and member of the Board of Directors. The ECB stressed yesterday that “besides OPEC’s decisions, there are other factors” that led to an increase in oil prices. However, at the same time, Washington was quick to criticize the decision of the eight oil-producing countries through the mouth of the representative of the National Security Council. As he told Reuters, “We don’t think it’s appropriate to cut production at this time given the uncertainty in the market.”

Fears of a rapid rise in oil prices to 95 and 100 dollars per barrel.

There has been a verbal tug-of-war between Washington and the international oil cartel over Saudi Arabia’s stance as Riyadh has resisted pressure from the White House to increase production to lower prices amid the energy crisis. Washington persistently and to no avail lobbied Riyadh and accused Saudi Arabia of colluding with Moscow and refusing to allow oil prices to fall in order to make life easier for its geopolitical ally. With the rise in prices for “black gold”, Moscow is increasing its revenues from oil exports, despite the efforts of the Europeans, who, by imposing a ceiling on oil, are trying to economically bend Russia, reducing its revenues from hydrocarbon exports, with which it finances the war in Ukraine.

Thus, the decision of the eight members of OPEC, and the immediate impact it had on the market, was the third consecutive Monday in the last month to upset monetary policy makers at central banks around the world. As Bloomberg notes, central bank officials woke up again yesterday with a new headache as successive events from the collapse of the Silicon Valley bank to rising oil prices constantly threaten to undermine their monetary policy and aggressively raise interest rates. .