Brent Crude Oil Prices, Silver Prices Hit Lowest Price In Four Weeks, Corn Prices Rise Amid Supply Concerns

India's RBI Keeps Repo Rate Unchanged Amid Tomato-Driven Inflation Surge

Summary:

  • Rising covid cases in China and 40-year high US Inflation.
  • The global economic outlook remains dim due to the rising borrowing costs, the war in Ukraine, high commodity prices and ongoing supply disruptions.
  • Failed talks between Russia and Ukraine puts corn supplies under pressure.

Read next: (XAUUSD) Gold Prices Falling In The Run-Up To US Inflation Data Release, NGAS Prices Fall But Remain Elevated, Coffee Prices 

Brent Crude prices fall for third session

Brent crude oil futures prices have fallen on Monday for their third session as investors have been monitoring the covid situation in China and have remained concerned that rising inflation may hinder growth and negatively impact the demand for oil. Major cities in China are fighting rising covid-19 cases with officials warning of “ferocious” Covid spread in Beijing. In addition, U.S inflation hit a 40-year high of 8.6% last month, which increases the likelihood of more aggressive interest rate hikes from the FED.

On Saturday US Fuel prices went above $5 per gallon, extending the surge in fuel costs that is driving rising inflation. Goldman Sachs indicated on Friday that energy prices needed to increase further before achieving a destruction in demand that is sufficient for market rebalancing.

Brent Crude Oil Prices, Silver Prices Hit Lowest Price In Four Weeks, Corn Prices Rise Amid Supply Concerns - 1 Brent Crude Oil Price Chart

Silver prices reaches its lowest level in 4 weeks

Investors' worries around the global economic outlook and a more hawkish attitude from the Federal Reserve have been strengthening, pushing silver prices down to its lowest level in four weeks. The global economic outlook remains dim due to the rising borrowing costs, the war in Ukraine, high commodity prices and ongoing supply disruptions.

The Fed is due to continue tightening its monetary policy during the coming week after US inflation reached 41-year highs during May, in addition the ECB and RBA have also chosen a more hawkish path as inflation shows no signs of peaking.

Brent Crude Oil Prices, Silver Prices Hit Lowest Price In Four Weeks, Corn Prices Rise Amid Supply Concerns - 2 Silver Jul ‘22 Futures Price Chart

Corn Prices rising amidst concerns around supply.

Corn prices reached nearly eight week highs in the wake of new concerns around grain supplies. Talks failed between two of the major corn suppliers, Russia and the Ukraine around the resuming of Ukrainian exports despite the Turkish efforts to negotiate a safe passage for grain stuck at the Black Sea Ports. Russian President Putin said free shipment depended on an end to sanctions on Russia.

Brent Crude Oil Prices, Silver Prices Hit Lowest Price In Four Weeks, Corn Prices Rise Amid Supply Concerns - 3 Corn Dec ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com

India's RBI Keeps Repo Rate Unchanged Amid Tomato-Driven Inflation Surge

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.