Friday, August 12, 2022
Google search engine
HomeEconomyAre Oil Prices Set To Rally Once Again?

Are Oil Prices Set To Rally Once Again?

While it is always risky attempting to forecast oil prices when volatility is soaring, the recent return above $100 for both WTI and Brent suggests fundamentals might once again be in the spotlight and a sustained price rally could be on the horizon.

Rig

Rig

Chart of the Week

Copper

– Dropping copper prices are often viewed as a crucial indicator in forecasting a future economic recession, hence the nickname Dr. Copper, and it seems that we have entered exactly that period. 

– Since April, copper has lost almost a third of its value as inflation is creeping ever-closer to double-digit territory in both the US and Europe, suggesting economic momentum is slowing. 

– Nominal interest rates on longer-term US treasuries have already started to weaken – the 10-year treasury rates fell to 3% recently – in another cautionary indicator of growth decelerating. 

– Having hit the lowest rate since November 2020 late last week at 6,955/mt, copper prices have…

Read more…

RELATED ARTICLES
- Advertisment -
Google search engine

Latest Posts