Markets very nervous ahead of US inflation figures
For the second day in a row, equity markets plunged yesterday on concerns about inflation, mainly in the US. The bond market was down as…
Get more analysis and data with our Premium subscription
Ask for a free trial here
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
Brent prices built some risk premium on Monday with the first nearby contract trading just below the $110/b mark this morning, mainly supported by prospect of tougher sanctions against Russia for alleged atrocities during its war in Ukraine. French President Macron notably called for a ban on Russian coal and oil imports yesterday morning. A further increase in Saudi Aramco’s official selling price (OSP) for its Arab Light crude for Asian refiners to a record premium of $9.35 a barrel above the Oman/Dubai regional benchmark may have also played into the bullish sentiment.
Note that the diesel shortage is far from being resolved in Europe with the Diesel crack to Brent still close to record highs reached in March and no clear indication that refineries are ramping up Diesel production amid maintenances and Covid-linked capacity closures. But the impact of high Diesel prices on economic activity could be significant in the long run given its intensive usage in the industrial sector.