Oil price spike risks wider market swings amid inflation fears
A spike in oil prices risks fanning wider moves across asset classes should inflation-sensitive investors believe the crude market will tighten further after OPEC+ failed to agree on a deal to increase production.
The surprise breakdown in talks means tighter supply conditions for crude and upward pressure on prices — at least in the near term — adding fuel to the wider inflationary concern that’s challenged central banks and roiled risk assets. Brent crude futures rose above $77 for the first time since 2018 this week, sending global energy shares higher.
