NEW YORK: Oil prices jumped higher Thursday after Opec+ countries allowed crude production to rise only slightly, while US stocks unwound over concerns about rising inflation despite the Federal Reserve’s attempt to allay fears.
“Today’s decision is clearly a positive outcome for oil prices,” said analyst Fawad Razaqzada at Thinkmarkets. Powell downplayed the fears of rising prices and reiterated that the Fed won’t be raising rates until inflation is above the central bank’s 2% goal and stays there “for some time”. A similar dynamic was seen in Asia, where inflation fears sent stock markets retreating even as virus-stricken economies reopened. European stocks fell in early trading but pared their losses, with Paris ending the day flat.The growing belief is that in the coming months, a spending splurge from pent-up consumers exiting lockdowns and a huge US stimulus package will light a rocket under prices.that have been a key driver of the surge in stocks markets.