Oil prices face 'battle royale' between Saudi Arabia and the Fed: BofA

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Oil prices face 'battle royale' between Saudi Arabia and the Fed: BofA
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Oil prices are facing a 'battle royale' between Saudi Arabia and the Federal Reserve, Bank of America says

Saudi Arabia and the Federal Reserve are locked in a"battle royale" over oil, and crude prices are likely to remain under pressure until the Fed pulls back on its tight monetary policy, according to Bank of America.

Those price drops over the past year are largely due to the Fed's aggressive monetary tightening policy, which has raised expectations of weaker economic growth, overriding the impact of"At their core, markets are witnessing a battle royale between Saudi Arabia and the US Federal Reserve, pitting Prince Abdulaziz bin Salman against Chairman Jay Powell," Blanch said in the note, later adding,"In this battle royale, oil has the losing hand until money starts easing again.

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