00:00 This just in, as of today, October 4th, Goldman Sachs is buying every barrel of oil it can get its hands on.
00:06 This news comes ahead of a massive showdown brewing between the two most powerful organizations on earth.
00:10 In one corner we have the U.S. Federal Reserve, led by Jerome Powell, who are doing everything they can to reduce inflation and the price of oil.
00:17 And in the other corner we have the Organization of the Petroleum Exporting Countries, or OPEC for short, led by Saudi Arabia, who have a vested interest in keeping oil prices high.
00:26 Right now oil is trading for about $86 a barrel, well below its June highs of $130.
00:31 But OPEC is meeting this week to discuss cutting oil production by up to 2 million barrels a day.
00:35 The reason I'm telling you this is because according to a report Goldman Sachs released yesterday,
00:39 they estimate that for every 1 million barrels that OPEC cuts from production, it could increase the price of oil by $20.
00:44 So, by cutting production by 2 million barrels, the price of oil could rise from $86 to $126, just below the peak price back in June.
00:52 But Jerome Powell said, "We have the tools we need, and we're going to use them to counter inflation."
00:56 So OPEC or the Fed? Place your bets. Thanks for watching.
