Persistent Likelihood Of A Demand-Draining Global Economic Recession - Brent Crude Oil Futures, Silver Futures, Corn Futures
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Summary:
- Brent crude futures increased by a small amount, extending gains for the third session.
- Silver futures touching 3 week highs.
Brent Crude Oil extends gains for third session
On Monday, Brent crude futures increased by a small amount to above $93.5 a barrel, extending gains for the third session. This was achieved despite concerns over a dimming demand picture and a US-led plan to control the price of Russian oil. The likelihood of a demand-draining global economic recession persisted, partly due to aggressive monetary tightening by major central banks and Covid-19 limits implemented by top crude importer China. As European sanctions begin to take effect in December, the Group of Seven is also attempting to persuade additional nations to join their efforts to restrict Moscow's energy revenues by setting a ceiling on Russian oil prices. Vladimir Putin, the president of Russia, promised to react by stopping all energy shipments to Europe if a price ceiling were to become law. Iran's commitment to a new nuclear accord has also been questioned by the UK, Germany, and France, which has delayed the possibility of an increase in Iranian oil exports.
Brent Crude Oil Futures Price Chart
Silver futures touch highest level in 3 weeks
In September, silver futures surged to nearly $19 per ounce, the highest level in three weeks, followed by other bullion assets during the US dollar's strong decline as investors continued to gauge how far the Federal Reserve will tighten policy. During the Cato Institute conference, Chairman Powell emphasized the language that the US central bank will keep raising interest rates to bring inflation significantly down, as markets continue to bet on the Fed raising rates by 75 basis points for a third time in a row this month. In other news, the ECB increased borrowing prices by a record-breaking 75 basis points to rein in the eurozone's soaring inflation and hinted at further tightening in upcoming sessions. Futures for silver are expected to end the week more than 4% higher.
Silver Dec ‘22 Futures Price Chart
Corn futures have gains 17.5% during 2022
Trading on a contract for difference (CFD) that reflects the benchmark market for this commodity shows that corn has gained 103.81 USd/BU or 17.50% since the start of 2022.
Corn Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
