Oil / Commodities - Oil gave up early gains in Asia, along with gold after France said that the U.S. and Russian presidents have agreed to a summit meeting over Ukraine. WTI plunged as much as 0.8%, reversing a more than 2% advance. Renewed warnings from the U.S. on a potential Russian invasion of Ukraine over the weekend had initially pushed up oil prices on Monday, following the first weekly decline this year on signs of an easing stand-off and hopes of a revival of Iran’s nuclear deal. Meanwhile, gold fell back below $1,900 an ounce after earlier hitting an eight-month high. Global commodity markets have been in thrall to the prolonged standoff over Ukraine, which comes at a time of already robust demand, surging prices and concern over fast-depleting inventories. Raw materials are trading close to a record, boosting inflation and complicating the task for central banks as they seek to tame the pace of inflation without derailing economic recovery. Paired with ongoing talks to save the 2015 Iran nuclear accord, geopolitics continue to hog the limelight on the immediate future of commodity markets, making volatility the main theme for now. Oil could be set for a prolonged period above $100 a barrel this year, with world demand poised to expand to a record.
Newsletter - February 21, 2022
Newsletter - February 21, 2022
Newsletter - February 21, 2022
Oil / Commodities - Oil gave up early gains in Asia, along with gold after France said that the U.S. and Russian presidents have agreed to a summit meeting over Ukraine. WTI plunged as much as 0.8%, reversing a more than 2% advance. Renewed warnings from the U.S. on a potential Russian invasion of Ukraine over the weekend had initially pushed up oil prices on Monday, following the first weekly decline this year on signs of an easing stand-off and hopes of a revival of Iran’s nuclear deal. Meanwhile, gold fell back below $1,900 an ounce after earlier hitting an eight-month high. Global commodity markets have been in thrall to the prolonged standoff over Ukraine, which comes at a time of already robust demand, surging prices and concern over fast-depleting inventories. Raw materials are trading close to a record, boosting inflation and complicating the task for central banks as they seek to tame the pace of inflation without derailing economic recovery. Paired with ongoing talks to save the 2015 Iran nuclear accord, geopolitics continue to hog the limelight on the immediate future of commodity markets, making volatility the main theme for now. Oil could be set for a prolonged period above $100 a barrel this year, with world demand poised to expand to a record.