Oil Shock Complicates Inflation Outlook Ahead of Fed Meeting

Bitcoin's price has taken a hit due to rising oil prices after a disruption at Saudi energy facilities. On September 8, Bitcoin traded below $80,000 as Brent crude futures touched $99.46 a barrel, with spot Brent price reaching $101 intraday.

The latest energy shock adds uncertainty to the inflation outlook, which could impact the Federal Reserve's decision-making process. The Bureau of Labor Statistics is scheduled to release August's Consumer Price Index on September 11, but this data will not reflect the recent disruption.

Friday's CPI report looks backward and measures prices from August, while the energy risk developing now cannot be reflected in the numbers. This creates a gap between the inflation data arriving before the Federal Reserve's meeting and the energy risk developing now.