OPEC shocked the world by announcing oil production cuts of 1.6 million barrels per day starting in May.
This is a big deal for inflation.
Why?
Because as I have noted previously, the ONLY inflation data that had come down in the last 12 months was in energy prices. And that was due to the Biden administration dumping 250 million barrels of oil in the open market while OPEC was maintaining its regular production rates.
See the data for yourself… literally everything but energy prices and used car prices continues to rise…
But now OPEC is cutting production at the same time that the Biden administration is set to STOP dumping oil on the market.
What does this mean?
Energy prices are about to erupt higher, pushing inflation to new highs.
Oil is already back at $80 a barrel, up from $66 per barrel a few weeks ago.
Gold has figured out what’s coming already. It’s rocketed from $1,600 an ounce to $2,000 an ounce and is about to break out to new all-time highs.
