Oil prices are dropping following a report that Saudi Arabia is prepared to raise crude production if Russia’s output significantly falls following European Union sanctions. According to the Financial Times, Saudi Arabia is aware of the risks of a supply shortage and that it is “not in their interests to lose control of oil prices.” Up until now, Saudi Arabia has resisted calls by the White House to boost production, even though the price of oil has risen to its highest point in a decade. Crude oil is trading around $113 a barrel.
Economic activity in the New Orleans area expanded at a modest pace over the past six weeks, according to the Fed’s latest assessment of regional economies. Labor markets remained tight, and wages continued to rise. Retail sales moderated somewhat, while tourism activity remained strong. Manufacturing activity was strong.
