The Energy Report: Inflation Duration – Investing.com

The Energy Report: Inflation Duration – Investing.com

Forget Omicron, it's inflation that is now the biggest threat to oil demand, or at least that is the oil market’s perception. prices continue to be under pressure after the came in at a whopping 9.6% year-over-year, as well as a record-breaking 7.7%.

That blow-out inflation number is raising fear that the will try to shock and awe the market out of these inflationary pressures that they helped create. Yet can the Fed keep a cool head after energy prices have already crashed, or will they signal an even more aggressive rate raising dot plot as well as a much quicker end to the taper?

If the Fed comes on too strong, the fear is that they will slow the economy and oil demand and give strength to the . A rising dollar is also a negative for oil prices.