....market participants have been seemingly happy to shrug off the oil price that is creeping higher.
....a higher oil price has always been a precursor to higher inflation
....and a higher inflation could put paid to a 2024 Fed pivot that Powell keeps reminding us will be data dependent.
....an intoxicated and overexuberant equity market is slow to wake up to the new realities that is unfolding. But soon...
Oil prices are now up 17% this year and well above $80/barrel again.
OPEC remains committed to production cuts and geopolitical tensions have threatened supply.
Meanwhile, global demand forecasts are being raised and inflation is rebounding.
Even as non-OPEC production is at record highs, oil prices continue to skyrocket.
It seems like high oil prices are just the new normal for consumers.
Yet another setback in the Fed's fight against inflation.
