, Columnist
Making OPEC+ Subject to US Antitrust Law Will Backfire
Punishing the Saudis and other oil producers for cutting supply could easily backfire.
Can things get worse?
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The last thing the global bond market needs on top of aggressive interest rate hikes is more trouble. Yet, there’s more coming, and from an unlikely source: a rapidly deteriorating relationship between the US and Saudi Arabia.
Earlier this month, Riyadh defied Washington, leading the OPEC+ cartel, which includes Russia, to cut oil production. The move has put a floor on oil prices, which have stabilized between $90 and $100 a barrel. As a result, inflation is likely to be more persistent than previously expected, probably forcing central banks into further monetary tightening, which would bite bond investors. This enraged the US.