This morning, Brent Crude Oil futures hit a new record high in seven years: above $93 per barrel. Since the beginning of the year, the price of crude oil has risen more than 20 percent, rising seven weeks in a row.
After a rise of around 20 percent this year, analysts assume that the oil price could break the $100 per barrel barrier. A recovery in demand combined with declining inventories and supply disruptions could lead to that.
White House warns of an attack "any day now"
OPEC+ countries appear to be struggling to meet their production targets despite approving plans to increase output. Geopolitical tensions in Eastern Europe remain high. The White House has warned that Russia could attack Ukraine "any day now," and this could also increase demand for oil.
The market situation could be improved by crude supplies from Iran. However, investors seem to disregard the progress in US talks with Iran. President Joe Biden's administration has reinstated sanctions exemptions for Iran to allow international nuclear cooperation projects to proceed.
Cryptocurrency prices are also rising
The price of bitcoin at the beginning of the week exceeds $42,000. This means that the cryptocurrency with the largest market capitalization costs the most since mid-January. As a result, the price seems to have recovered since the last low, which was set on January 24 under the level of $33,000, and the increase since the last low is about 30 percent.
The second most popular cryptocurrency, ethereum, costs $3100 this morning. Thus, since the bottom of January 24, ETH may have already rallied by more than 40 percent, from the low of $2160. This type of rebound may lead one to again consider whether the previous declines were a correction in a trend, or whether the current increases are a correction in a bear market. One thing seems certain: never before have we been able to observe the behavior of the cryptocurrency market in such a strongly changing macroeconomic environment with such a high propensity of central banks to raise interest rates.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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