Jakarta, CNBC Indonesia – World oil prices moved up this morning. Not just up, but leaping.
On Wednesday (12/1/2022) at 06:41 WIB, the price of Brent oil was at US$ 83.72/barrel. Up 3.52% from the previous day’s position.
Meanwhile, the light sweet type or West Texas Intermediate (WTI) costs US$ 81.22/barrel. Increase by 3.82%.
What makes oil prices ‘fly’ like that?
It was Jerome ‘Jay’ Powell, Chairman of the United States Central Bank (US) The Federal Reserve / The Fed, who had the influence to boost the price of the black gold. In a meeting in Congress, Powell emphasized that the economy of Uncle Sam’s country was strong enough to face the wave of the omicron variant of the corona virus and tightening monetary policy.
“Inflation is well above the target (2%), the economy no longer needs or wants an accommodative monetary policy. We must focus on keeping inflation under control because it is impossible to achieve maximum job creation (maximum employment) without price stability.
“We see that the economy can still function despite various waves of Covid-19 attacks (Coronavirus Disease-2019),” said Powell, as quoted by Reuters.
Powell’s statement gives optimism that the US economic outlook will be bright. Do not forget, the US is the world’s largest oil consumer. So when the US economy grows, the consumption of oil will rise and the price will also rise.
“Demand will still grow stronger than supply. This is what makes prices rise,” said Phil Flynn, senior analyst at Price Futures Group, as reported by Reuters.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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