Central Banks' Lessons for Opec (Energy Intelligence, August 7, 2023)

"The world’s leading central banks have undergone a sea change in how they manage financial markets in the past 20 years. Central bankers such as Jerome Powell and Christine Lagarde now explain and justify both current and prospective actions regarding monetary policy to the press and the public. Surprises are avoided by explaining the thinking of the decision-making individuals. They are careful to be clear in their actions and in informing market participants. If Opec-plus — and major oil companies — were to adopt a similar “market friendly” approach, they could create a sense of stability and rationality that might stabilize oil prices, reduce uncertainty and slow the headlong rush away from fossil fuels. Crude oil prices might be 20% or 30% higher. Global crude oil inventories would also likely be higher if trader and refiner buyers believed prices were unlikely to decline."


Philip Verleger, Energy Intelligence, August 7, 2023. Click here to read more.