Saudi Arabia Hike Brent Crude Oil Prices, Demand For Safe-haven Assets Is Supporting Silver Prices, Corn Prices At 8 Week Lows
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Summary:
- Saudi Arabia hiked their crude oil prices for July.
- Hopes of higher corn supplies thanks to hopeful USDA reports and easing trade restrictions between the major producers.
- Increased demand for Silver as a safe-haven asset drives the prices up.
Brent Crude oil prices surge as Saudi Arabia Increase prices
On Monday Saudi Arabia hiked their crude oil prices for July, driving the price of Brent crude oil up to almost $121 per barrel. This move tightened global supplies even after OPEC+ agreed to increase its output at a faster pace in the coming months. The premium for the barrels heading to the U.S remained steady, whilst the premiums for the barrels heading for Asia and Northwest European countries were raised by Saudi Arabia.
Despite OPEC+ promises to increase its output by 50% than previously planned, there are still doubts around whether or not they can meet the demand as member countries are struggling to meet the demand. The price rise and the demand and supply concerns are happening in the peak of the U.S driving season and increased demand as China comes out of its Covid-19 lockdowns, and their economy starts again.
Brent Crude Oil Futures Price Chart
Silver prices rise again
The price of silver reached the highest in a month, this comes in the wake of increased demand for the safe-haven asset. The increased demand is being caused by continuing geopolitical tensions, inflation and persistent concerns around slowing global growth.
Silver Jul ‘22 Price Chart
Corn prices low
Corn futures are trading at eight week lows on Monday amidst strong hopes of higher supplies thanks to hopeful USDA reports and easing trade restrictions between the major producers. With planting progress strong and expectations for exports to resume from the Ukraine, prices are dropping. In addition, Brazil and Beijing came to a conclusion regarding beginning exports from Brazil to China.
Corn Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
