ECB watching oil's inflation risk as Brent falls back below US$90
Make us a preferred source
Make us a preferred source on Google
The news: European Central Bank President Christine Lagarde has told euro area finance ministers the institution is monitoring oil prices for any inflationary impact from the Israel-Hamas conflict, Bloomberg reported, citing unnamed sources.
The numbers: Brent crude futures have eased to USD89.29 a barrel after breaking above USD90 on Friday, catalysed by what growing unrest in the Middle East could mean for supply. US strategic oil reserves are at their lowest levels since the early 1980s at 351.2 million barrels. A year ago they were at well over 600 million barrels.
The context: While most central banks have been battling rising demand-side inflation with interest rate hikes, supply-side shocks pose massive headaches for policymakers.
The sources: US Energy Information Administration, Bloomberg
