Higher oil prices will not trouble Fed
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy
Speculative pressure boosted oil prices in the first quarter of 2024 and will likely do so in the second and third quarters as well. Some analysts assert that the rising prices will cause trouble for the US Federal Reserve. They will not. Today, oil has become relatively unimportant in the US economy. The real pain from high prices will be felt by European countries and the emerging market nations, where higher oil prices wreak economic havoc. Ironically, though, the oil-exporting countries may be the real losers from the speculation-driven price increases in the longer term. Several traders and forecasters see supply and demand balanc

Also in this section
5 August 2025
After failed attempts to find a buyer for its stake in Russia’s largest oil producer, BP may be able to avoid the harsh treatment meted out to ExxonMobil and Shell when they exited—and could even restart operations if geopolitical conditions improve
1 August 2025
A number of companies have filed arbitration claims against Gazprom over non-deliveries of contracted gas or other matters—and won. The next step is to collect the award, but this is no easy task
1 August 2025
Europe’s refining sector is desperately trying to adapt to a shifting global energy landscape and nowhere is this more apparent than in its largest economy
1 August 2025
The Middle East natural gas playbook is being rewritten. The fuel source offers the region a pathway to a cleaner, sustainable and affordable means of local power, to fasttrack economic development and as a lucrative opportunity to better monetise its energy resources.