Oil jumps after Biden’s failed Saudi trip
Oil prices are soaring again today, buoyed by an apparent easing in economic fears, stronger risk appetite and a failure by the White House to get any concrete commitment to increase oil output during the Middle East visit.
When the biggest talking point from President Biden’s meeting with Saudi Crown Prince Mohammed bin Salman is a fist bump photo, you know it probably hasn’t gone to plan. It’s another blow ahead of the midterms for Biden in what was ultimately a desperate attempt to at least look like he’s doing everything in his power to restore prices to more tolerable levels.
A recession appears to be the only hope for sustainable sub-USD 100 prices now which is a little depressing. Perhaps OPEC+ will surprise us next month but we shouldn’t get our hopes up.
Buoyed by a weaker greenback
Gold is enjoying a decent start to the week as the improved risk environment takes some of the heat out of the dollar rally. The yellow metal had tested USD 1,700 late last week but is enjoying a bit of a breather so far today. I’m not convinced that will be sustained but the Fed being silent this week probably gives it the best hope in the short term.
For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events
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