Oil prices have sunk to a new recent low, not seen since Russia officially invaded Ukraine back in late February. Is the "Putin price hike" over? Will calls for refiners to increase capacity continue to be made?

The reason for the drop seems to be speculation that the Fed will raise interest rates not just by 75 bps but 100 bps. The dramatic hike in interest rates is what many say is necessary to tame continuing Rising inflation.

Does this mean that we will immediately begin to see some relief at the gas pump? Not quite yet. If crude stays at the levels it's currently at, prices at gas stations usually lag behind 2 to 5 days. For now, it seems some temporary relief is coming. Whether or not it has a lasting effect remains to be seen. It seems funny now to think of $4 being cheap for a gallon of gas, though it is better than paying $5 a gallon. It's a long way from pay $1.75 back in March 2020, that's for sure.

So if the speculation that a 100 bps rate hike is on the table is having an effect on crude prices, perhaps the massive raise is not only necessary to fight inflation but is starting to help before it's officially implemented.