UBS On-Air: Paul Donovan Daily Audio 'One million barrels'

Saudi Arabia pledged to cut oil production by one million barrels per day. Oil prices subsequently soared to levels not seen since last Tuesday. Any price increase transfers money from buyers to sellers, so the global growth impact is more redistributive than negative. The impact on developed economy consumers depends on changes in oil demand, and whether other factors influence prices. UK auto fuel prices fell recently, after the competition authority became interested in retailers’ profits.