G7 Leaders Discussed A Price Cap On Russian Brent Crude Oil, China Eases Covid-19 Restrictions, Corn Prices Are Trading At 2 Week Lows
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Summary:
- G7 leaders discussed a price cap on Russian oil.
- Fears of a recession eased in the wake of China’s easing of lockdown restrictions and testing measures.
- Recession prospects weighing on demand for corn.
Prospects of tighter supply of Brent Crude oil weighed on markets
Brent Crude prices are sitting at around $113 on Monday as recession fears put downward pressure on Brent prices. In addition, traders are monitoring any news from the G7 summit which is taking place in Germany ahead of talks between the US and Iran to revive the nuclear deal made in 2015. G7 leaders discussed a price cap on Russian oil, which will work through the imposition of restrictions on both shipping and insurance and allowing only the transportation of Russian crude and petroleum products that are sold below an agreed threshold. However, the thought of even more supply tightness weighed on the market, with the G7 leaders still determined to find ways to cut Russia's war against Ukraine Funding.
Brent Crude Oil Price Chart
Silver prices bounce back
Silver prices bounced back somewhat on Monday as fears of a recession eased in the wake of China’s easing of lockdown restrictions and testing measures. However, silver prices remain under threat from further monetary policy tightening, with both the Federal Reserve and the European Central Bank (ECB) expected to raise interest rates further.
Silver Jul ‘22 Futures Prices
Corn Prices at 2 week lows
Corn is trading at 2 week lows on Monday, as favourable weather and weaker demand prospects weighed on prices, temporarily turning the attention away from war disruptions at Black Sea Ports. Fears of demand come from recession prospects.
Corn Dec ‘22 Futures Price Chart
Sources: tradingeconomics.com, finance.yahoo.com
