Danni Hewson

Yeah, absolutely.

It does seem that people have woken up this morning and read that report and considered what that could potentially mean to supply going forward.

That said, we saw a spike this morning when the price of a barrel of Brent crude hit 11%.

126.41.

It has come down to almost $121 a barrel.

So, I think traders are sort of taking a bit of a breath and trying to work out what's really going in.

But it's been a really difficult week for oil markets.

We, of course, heard that the United Arab Emirates is leaving OPEC.

That's expected to have very limited near-term impact on the price of oil, but going forward, that could be significant and does raise questions about the future of OPEC in general.

It has said it is going to raise output slightly, but...

Yeah, I mean, investors are just wondering whether or not the taco trade, Trump always chickens out, can still be applied.

And that is now factoring into the price of oil.

Yes, we're already seeing the impact of higher oil prices.

And even if it were to snap back, you're not going to see prices go back to where they were in December or even where they were at the start of the war at just over $70 a barrel.

We have seen people now buying oil at this price, which is now being paid for at the pump.

It's being paid for by farmers who are needing to put fertilizer on their field.

It's being involved in creating energy and in creating all the goods that we eat on our shelves.

And this is now impacting inflation.

We're expecting figures today from the Eurozone showing it nearing 3%.

And this, of course, is going to have an effect on the European Central Bank and its ability to cut interest rates.