Home Business NewsBusiness Inflation concerns return with oil at a seven-year high

Inflation concerns return with oil at a seven-year high

by LLB Reporter
18th Jan 22 11:19 am

Having yesterday reached heights not seen in more than two years, the FTSE 100 was under pressure on Tuesday.

A rise in oil prices to a seven-year high and a continuing, though below inflation, rise in UK earnings has put the spotlight once again on inflationary pressures and a cost of living crisis.

“Traders are eyeing the $100 per barrel mark for crude oil for the first time since 2014, with the perceived diminishing threat posed by Omicron to the global economy and supply constraints and disruption driving the black stuff higher,” said AJ Bell’s Russ Mould.

“The question now is whether OPEC will take action to address the surge in the market, or risk demand destruction if it doesn’t.

“US futures markets are pointing to a flat start when Wall Street resumes after Martin Luther King Day. However, the steady stream of US earnings reports, which this week includes Netflix, Bank of America and Goldman Sachs, could help tip the scales in either a positive or negative direction.”

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