War-driven oil prices

News for today, Monday, January 31

Chinese zero-Covid restrictions may impact the global supply chain. Although China has very few Covid cases, even rare occasions of shutting down entire cities and seaports concern the market a lot. Even a short-term lockdown may affect the entire world, acting with a ripple effect. These corrupt the existing infrastructure and cancel out the advanced Just-in-Time logistics that has been advancing over the past decades.

Crude prices are holding at a 7-year height now. Western countries are about to implement new sanctions on Russia. The Ukraine-Russia border tension doesn’t seem to loosen anyhow, which pushes oil prices up, as sanctions on Russia create a threat of commodity supply tightening.  

The price of Brent crude is $89.10, WTI — $87.46, GBP/USD — 1.3448, EUR/USD — 1.1177, and gold costs $1789.00 per ounce.