Energy & precious metals - weekly review and outlook
Investing.com — Two factors will determine the direction of oil markets in the coming week. The first is how much the conflict in the Middle East could escalate and what it might mean for supplies in the world's top oil producing region. The second is what will the weekly update on US crude stockpiles look like on Wednesday.
Crude prices got to finish the just-ended week up as much as 7%, after somewhat of a roller-coaster. An initial 4% gain on Monday from concerns over the latest Middle East war was pared to just 1% by Thursday from data showing the worst weekly US crude build in eight months, on top of record production.
By Friday, though, it looked like oil had entered a whole new world as the United States exercised its first sanctions against the flouters of the G-7 price cap on Russian oil. As the week drew to a close and crude prices tacked on almost 6% more, the Biden administration had not announced if it will come down hard on Iranian oil next.
There were rumblings though from all fronts, pushing it to act.
One of the chief instigators was Iran itself, which continued to demonstrate the bellicose nature of its relationship with Hamas. State-organized rallies were held across the Islamic Republic Friday in support of the Palestinian terror group, simultaneous with condemnations of the Israeli bombardment of the blockaded Gaza Strip.
In the US Congress, Republicans were just as boisterous. Kevin McCarthy of California said the United States should “stop Iran from being able to produce the oil”. Lindsey Graham of South California said if the conflict escalates, “we should tell the Ayatollah we will destroy your oil refineries and your oil infrastructure.”
Treasury Secretary Janet Yellen did say nothing was
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