OPEC hits the gas

Monday was all about oil following the surprise decision by the Organization of Petroleum Exporting Countries and its allies to slash output. The move—which contradicts earlier signals from Saudi Arabia—brought concerns about the inflationary impact of oil back to the fore. The White House described the OPEC+ decision as ill-advised given current market conditions while seeking to reassure consumers it will work with producers to manage prices. Over the past year, the Biden administration has accused Big Oil companies of price gouging and “war-profiteering” given high prices that stuck around long after Vladimir Putin invaded Ukraine. Today, the average cost of a gallon of gas in the US is about $3.50. Any price jump would come just ahead of the busy summer driving season, when demand peaks. Still, while OPEC and company control much of the supply, the US and other economies remain a wildcard for demand, making it unclear how long any price spike will last. “Oil is up big today, but it’s a knee-jerk reaction,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “I’m not convinced that the cut will have much lasting power.” —Natasha Solo-Lyons

The good news for the inflation-wary is that, while OPEC+ may have thrown a wrench in the Fed’s fight, US factory activity has contracted more than expected, tempering inflation concerns. Here’s your markets wrap.

Switzerland’s top prosecutor opened a probe to gather information into potential crimes that may have taken place around UBS’s takeover of Credit Suisse. Meanwhile the emergency combination of the nation’s two biggest banks is beginning to take shape.

China’s yuan has replaced the US dollar as the most traded currency in Russia, little more than 13 months after the Kremlin started its war, triggering a slew of Western sanctions.

McDonald’s is temporarily closing its US offices this week as it plans to notify hundreds of corporate employees that they’re being terminated as part of a broader restructuring plan.

Disney CEO Bob Iger came out swinging at Florida Governor Ron DeSantis, saying the far-right Republican’s policies regarding the theme-park giant have been “not just anti-Florida, but anti-business.”

World Wrestling Entertainment shares tumbled as investors expressed disappointment at plans to combine the professional wrestling company with Endeavor Group’s mixed martial arts league, Ultimate Fighting Championship.

Patients diagnosed with conditions like anxiety and sleep disorders have been caught in the crosshairs of America’s opioid crisis, as secret policies mandated by a national opioid settlement turn filling legitimate prescriptions into a major headache.

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

Even high-end travelers are pulling back on their vacation spending. They want to pay no more than $500 a night for a hotel, and they aren’t interested in paying extra for greener or fancier options, according to the latest MLIV Pulse survey with 465 respondents from the US, Canada and Europe. The results come during what should be one of the busiest periods for travel booking. March is when most people start to finalize summer plans and early birds get a jump on yearend holiday reservations.

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