UBS On-Air: Paul Donovan Daily Audio 'Oil, inflation, and disinflation'

The Brent crude oil benchmark moved above USD90 per barrel, following reports of an extension to production cuts by Saudi Arabia and Russia. This will likely trigger angst about inflation. Oil prices in late 2022 were moving around USD80 per barrel. However, deflation forces for durable goods and disinflation forces as profit-led inflation is squeezed are still in place. If the oil price persists at current levels, it may slow disinflation rather than reignite inflation.