UK Oil Benchmark Fell 5%, Price Of Silver Reaching July 2020 Lows, Corn Commodities
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Summary:
- Corn commodities and the agricultural market.
- OPEC+ and Saudi ministers.
- Aggressive Fed driving silver demand down
Brent Crude Oil prices
Investors are trying to deal with tighter supplies as risk appetite has seemingly returned to the markets, driving the price of Brent crude up. Ministers in Saudi Arabia insisted that future policy decisions would be made in accordance with the August 3rd OPEC+ meeting and with keeping market dynamics in mind. In addition, Libya indicated their oil ports and fields will begin functioning again and electricity output will increase after months of outages. Diesel and Gasoline demand fell during the first half of July in India due to seasonal rainfalls. The UK oil benchmark fell 5% and has been on the decline since the middle of June due to growing recession concerns.
Brent Crude Oil Futures Price Chart
Silver affected by aggressive monetary policy tightening
Silver prices have been falling to their lowest level since July 2020 amidst concerns around demand in China and an aggressive monetary policy tightening Federal Reserve who are committed to fighting sky-high inflation. The reiteration from the Fed around their determination to control sky-high inflation has expectations for a July interest rate hike set at 75 basis points.
Silver Sep ‘22 Futures Price Chart
Corn Commodities falling to 5 week lows
Corn commodities have been extending their decline to almost 5 week lows tracking a broader decline within the agricultural commodity market. Corn production forecasts for the 2022/2023 years were revised upwards by 45 million bushels in the United States due to greater harvesting and planting areas.
Corn Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
