Oil price spikes – what does it mean for inflation and the stock market?

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With oil trading above $95, we take a closer look at what this could mean for inflation, the stock market, and investors.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

19 September 2023

The oil price has crept higher over the summer months. Back in June, you could pick up a barrel of brent crude oil for less than $75, now it’s trading above $95 – 26% higher since July.

This is a big move. When the price of a commodity like oil rises sharply it can have a big impact, including on consumer and business behaviours.

US inflation also exceeded forecasts in August, and more than half of this jump was driven by gasoline prices. Rising oil prices are already impacting the real economy.

Here’s a closer look at how the world can manage with oil above $95, and what this dynamic could mean for investors.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice. All investments and any