Oil Surges as Supply Shock Takes Hold Ahead of Fed Decision
Oil prices surged on Monday, while Bitcoin and gold fell, as global markets diverged ahead of Wednesday's Federal Reserve rate decision.
Brent crude rose by 2.75% to $107.48, and West Texas Intermediate gained 2.51% to $102.56. In contrast, Bitcoin (BTC) dropped 4.4% over the week, trading near $76,718, while gold eased 0.22% to $4,340.58.
The increase in oil prices can be attributed to a supply shock caused by Saudi Arabia's shutdown of its East-West pipeline after drones damaged it. This has threatened up to 4% of global oil supply and led to fresh Houthi strikes on Saudi soil and an attack on a vessel in the Strait of Hormuz.
Market analyst Tony Sycamore noted that unless talks in Oman produce something operational, crude oil may continue to extend its gains toward $119.48 high of early March.