Monetary policy

Oil: piecing together the puzzle

• In December, OPEC announced new cuts to its production in order to narrow the gap between supply and demand in the crude oil market. This has occurred, above all, due to a lower than expected increase in demand. • Looking ahead into 2020, uncertainty surrounding economic growth coupled with the classic supply factors (OPEC cuts, geopolitical tensions and events in the shale industry) could introduce volatility into the oil market. In early December 2019, OPEC and its partners (OPEC+) decided to cut oil production even further. Specifically, they increased...