Oil Surges as Cryptos and Metals Fall Ahead of Fed Decision

Global markets are experiencing a divergence ahead of the Federal Reserve's rate decision on Wednesday. Oil prices have surged, while cryptocurrencies and precious metals have declined.

The price of Brent crude rose by 2.75% to $107.48, with West Texas Intermediate gaining 2.51% to $102.56. This is in contrast to Bitcoin (BTC), which fell along with gold, silver, and copper.

The upward trend in oil prices can be attributed to a supply shock caused by the closure of Saudi Arabia's East-West pipeline after it was damaged by drones launched from Iraq. The outage is expected to affect up to 4% of global oil supply.

Analyst Tony Sycamore at IG warns that unless talks in Oman produce something operational, the risk is that crude oil continues to extend its gains towards $119.48, the high reached in early March.