Energy Prices Rise May Trigger A Recession

Energy Prices Rise May Trigger A Recession

Share to Linkedin Since the war in Ukraine began, Russia has attempted to counter Western sanctions and its battlefield incompetence by strangling Western energy supplies, raising prices, and inducing a recession – even if it would eventually cause harm to the Kremlin's cash flow as prices would collapse. OPEC+'s decision on Sunday to cut oil output by 1. 2 million barrels per day is set to have far-reaching economic implications and may create a recession in the West which Russia so desperately wants in a fit of Schadenfreude. The OPEC+ cartel of oil-producing nations led by Saudi Arabia and Russia and chaired by Alexander Novak, Russia's Deputy Prime Minister and Minister of Energy, is going to remove nearly 1 percent of total global oil production from the market in an apparent effort to increase prices. Despite earlier signals that OPEC+ would make no further reductions to oil production this year, the recent announcement was framed as a "precautionary measure" to ensure stability in the energy market. With oil prices surging 6. 3% on Monday, to $85 a barrel for Brent, the Federal Reserve and other central bankers across the globe trying to get inflation under control, have been thrown a