Oil spikes as OPEC offers the EU little hope
Oil prices are spiking after flirting with sub-USD 100 levels in recent days as China appeared to loosen lockdown restrictions and OPEC warned that it would be impossible to replace Russian crude while pushing back against calls for it to utilise its spare capacity. This also came as it reported a decline in supply and demand growth this year and another missed month of production targets; something that the market expects after months of the same.
While the EU is continuing to push for higher output which would enable it to consider sanctions on Russian oil without severe economic damage at home – with current prices already causing problems – it seems it’s not going to be aided by the group that remains Russia’s ally in the OPEC+ alliance. With that in mind, the brief flirtation with double-digit oil may already be at an end for now.
Gold jumps as US inflation hits 40-year high
Gold is up around 1% on the day, buoyed by lower yields and a softening of the dollar in the aftermath of the inflation data. It seems that while the data brought some relief, it continues to drive demand for the yellow metal as a hedge against the highest price increases in more than 40 years.
Gold has now broken through the upper end of the range it traded within for much of the last month and could potentially have sights set on USD 2,000 where it could run into some resistance.
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