Crude oil prices break through $87, with rising concerns about inflation😵
Speaking on pressure on bond yields, crude oil surged above $87 for the first time in nearly a year as the largest OPEC+ products extended their supply cuts to cover year-end. Saudi Arabia will continue its unilateral production cutback of 1 million barrels a day until December, a move that caught the commodity market off-guard, with the total output of 9 million bdp marking the lowest levels in several years. Coupled with the jump in ISM prices paid last Friday (48.4 vs 42.6), we fear that the disinflationary trend we saw in prices might be coming to an end, with upside risks next year’s inflation outlook.
