Posted To: MBS Commentary
Today brought the long-awaited and hotly-anticipated conclusion of a deal among OPEC countries to limit oil production. Constricted supply has one intention: higher prices. For now, petroleum still fuels trade for the foreseeable future. So a widespread agreement to limit supply (read: raise prices) among OPEC countries has an immediate, quantitative impact on prices. But perhaps more insidiously , it has long-term, qualitative implications for future inflation pressures. This surely wouldn't have been as big a deal were it not for the fact that markets are already pretty stressed out over the long-term qualitative inflation implications from the inbound Trump administration. Simply put, markets were already relatively freaked out about what fiscal policies might do to inflation, so the...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
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