UK monetary policy impacts global oil supply and commodity prices significantly.
The study looked at how changes in UK monetary policy affect oil inventories and supply at different levels. They found that when UK monetary policy is loose, OPEC oil supply decreases significantly, while tight policy affects UK and EU oil stocks the most. After the Bank of England gained independence, world and OPEC oil supply became less responsive to money supply and more to interest rates. OECD oil stocks also became slightly more responsive after the financial crisis.