Investors concerned over increasing oil prices
On Sunday, oil cartel OPEC+ announced ambitions to cut production by more than 1 million barrels of oil per day, spreading new concerns among investors, writes Danish business daily Børsen.
The cut amounts to a little more than 3% of OPEC’s daily production, and the announcement caused the oil price to surge by just above 6% on Monday.
”It is very bad news because it makes it harder to fight inflation, which is already one of things that’s the most worrying right now. Fuel is added to the fire regarding the wage-price-spiral that we may or may not have in Europe,” states Tino Choi, chief strategist of pension provider PFA, to Børsen.
The announcement from OPEC+ arrives parallel to central banks tightening the monetary policy in order to fight the highly elevated inflation where oil is an important component.
”Most expect some sort of recession within the next 12 months, and the higher the oil price, the harder the impact on us,” states Choi to the news outlet.
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