Oil surges amid further supply issues
Oil prices are more than 5% higher after Russia confirmed that oil exports via the Caspian Pipeline Consortium (CPC) will fall by around a million barrels a day for up to two months as a result of storm damage. This comes at a time of significant tightness in the market and could contribute to further increases in the price in the coming weeks.
That is of course unless other producers step up and utilise the spare capacity in order to prevent oil prices from hitting recessionary levels. But that still seems a stretch despite the efforts of leaders from a variety of consuming countries unless Russia decides to support such a move.
Gold remains in consolidation
Gold prices are a little higher in risk-averse trade but broadly speaking remain in consolidation, just as they have for the last week. The yellow metal is very much struggling for direction faced with high inflation but much more aggressive tightening and substantial uncertainty but improved sentiment. It may remain well supported given the sheer level of uncertainty but upside may face more resistance than we saw last month, for example, unless we see a significant escalation in Ukraine.
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