The reduction in the extent of disinflation due to new behaviour by OPEC countries is visible – Natixis
|Economists at Natixis analyze the impacts of the lack of a fall in the oil price on inflation.
What slowdown in disinflation due to OPEC's new behaviour?
“OPEC countries have reduced their oil production in 2023 to stabilise the price. We estimate that the reduction in OPEC's oil production is 5 million barrels per day in 2023, compared with OPEC’s past behaviour, which was much less responsive to falling oil prices.”
“According to our estimates, this reduction in OPEC production leads to an increase in the oil price of 30 dollars per barrel, i.e. a 54% increase in the oil price. And lastly, the additional headline inflation generated by this rise in the oil price in 2023 can be estimated at: 0.81 percentage points in the US; 0.70 percentage points in the Eurozone.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.