How The Fed Is Artificially Propping Up Oil Prices

Oil prices have stabilized at $40 per barrel, despite global oil demand remaining sharply below pre-pandemic levels. Everyone knows the significant role that OPEC+ has played in balancing the oil market, along with the sharp drop in production elsewhere, including in U.S. shale. But looking further out, another institution could play an even larger role in driving up oil prices: the U.S. Federal Reserve. Oil prices have historically moved in close concert with inflation. Recent examples include 2003-2008, which saw loose monetary policy, inflation…