The thaw in the financial markets. Discount on raw materials
Yesterday's session can be defined as relief rally. Investors seemed to focus on returning to risky assets, abandoning e.g. gold. The market seems to be counting on a ceasefire between the armies of Russia and Ukraine as both sides relaxed their demands.
On Wednesday, the advisor to President Volodymyr Zelensky on foreign policy said that Ukraine is open to talks on neutrality as long as it receives security guarantees, but does not give up "not a centimeter" of its territory. Today, in Turkey, a meeting of the foreign ministers of both countries is to be held, which also gives hope for talks between the parties.
An important voice of the United Arab Emirates
Hopes for an easing of the war may have contributed to a change in market sentiment and a decline in energy commodity prices. WTI Crude Oil they oscillated around USD 110 per barrel on Thursday, and they fell by 12 percent during the previous session. from levels last observed in 2008.
However, one of the main reasons for such a strong price slump may be the request of the United Arab Emirates, which they want to persuade OPEC+ to increase production faster to alleviate the turmoil in energy markets. Earlier this week, OPEC and Chevron chiefs said there was no oil shortage, and Iraq insisted that there was no need for an over-plan increase in production.
Gold and oil - the biggest drops in months
The market changed just days after crude oil prices peaked since 2008 on Monday. Yesterday's pullback could mark the biggest drop in a single day since November.
Gold also seemed to decline in value. The precious metal could see its biggest drop in 14 months on Wednesday, dropping below $ 2000 an ounce.