Oil prices are at their highest levels since 2014.
The tension between the world’s two poles is high. Putin says that the possibility of a military engagement in Ukraine is on the table. Biden responded by saying that if there is a military invasion in Ukraine, the US will respond quickly and aggressively.
On Friday, oil prices hit their highest level since 2014 by an increase of 3%, leaving the oil and energy markets in a more complex situation. The fear of a global supply shortage is rising day by day. Bernet and west Texas intermediate futures both increased in a range of 3.3% and 3.6%. On Friday, beer closed at $94.44 per barrier. The barrier for the Texas intermediate futures contract closed at $93.1.Oil prices jumped to a new high level. Diamondback energy stock prices jumped by 4%. ExxonMobil rose by 2.5%. Oil has logged eight weeks of gains as global inflation is still hitting new places and sectors.
On top of that, the global oil supply is facing a big gap between its consumer demands and its supplies. This is one of several factors that have contributed to oil and energy prices reaching a new high since 2014. The IEA has issued a report lately that suggests the oil price and energy prices can be fixed with the help of the UAE and Saudi Arabia. A speaker of the international energy agency says that these two countries can cool down the hot energy prices. The UAE and Saudi Arabia have the world’s largest oil reserves now. This could be a temporary solution for oil prices till inflation surges cool down a bit. The agency added that the current inflation and supply shortage effects will be massive and hard to contain if we let things loose.
Will the current crisis affect stock market volatility?
These two countries can provide the solution at the moment while the tension between the two energy forces remains high. The White House says that at the time, Russia had the numbers to implement a military invasion of Ukraine.
In the stock market, we have seen a decline in airline and travel stocks, tech stocks, energy stocks, and more. It’s obvious that the stock market’s volatility is high at the current time. This is a clear sign that the central banks and the Federal Reserve will implement full percentage hikes by the halftime of this year. This speculation is already controlled by the Federal Reserve Bank president. Goldman Sachs made a new forecast last week, which indicates there will be seven different hikes of 25 basis points in 2022.
The federal rescue says that it will increase a full 100 basis points by the end of July. It’s not confirmed at this time, but all odds are on the table. The U.S consumer index has reached its highest level in four decades. The average consumer buyer still suffers from high energy prices and an increase in the majority of goods and services. A 100% interest hike could multiply the problems for debt holders, mortgage rates, and the housing market. This next week will determine the direction of the market and its effects on the workforce, Buying power, the stock market, and the U.S economy.
The tension between the world’s two poles is high. Putin says that the possibility of a military engagement in Ukraine is on the table. Biden responded by saying that if there is a military invasion in Ukraine, the US will respond quickly and aggressively.On Friday, oil prices hit their highest level since 2014 by an increase of 3%, leaving the oil and energy markets in a more complex situation. The fear of a global supply shortage is rising day by day.