World commodities and resources rocket on talk of oil at $100
Nickel has its biggest jump in more than six years on sanctions worries, while risk of inflationary pulse is a drag for fixed-income bonds
London — Talk that Saudi Arabia has its sights on $80 to $100 a barrel oil again ignited a fierce rally in commodities and resource stocks on Thursday, although the potential boost to inflation globally put some pressure on fixed-income assets. It was set to be the strongest day for the commodity complex in eight months as Brent crude futures climbed past $74 a barrel after a near 3% jump overnight. The surge came on a Reuters report that oil cartel Opec’s new price hawk Saudi Arabia would be happy for crude to rise to $80 or even $100, a sign Riyadh will seek no changes to a supply-cut deal even though the agreement’s original target is now within sight. "The Saudis and their colleagues in Opec need higher oil for their fiscal positions and the Kingdom is on a bold — and costly — reform programme," said Greg McKenna, chief market strategist at CFD and forex provider AxiTrader. The leap in oil combined with fears that sanctions on Russia could hit supplies of other commodities to li...
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