The Fed is the 'new arbiter of oil prices' as rate hikes weigh on economic activity, energy historian Daniel Yergin says

Daniel Yergin, an energy historian, says that the Federal Reserve has become the new arbiter of oil prices.

The central bank's benchmark interest rate increases to combat inflation are eating the oil market as it is the stock market, according to CNBC's Squawk Box. The picture is complicated by the fact that demand is down compared to the same period in 2020.

European proposals to cap energy prices are "inevitable" due to the high costs of energy that EU member countries are dealing with, said Yergin.

Given the degree of economic hardship, you just hope that they do it in a soundproof way.

The war in Ukraine has put Europe in a position it has never been in before, while Putin is using gas to create economic hardship and political turmoil in Europe.