Oil Surges as Bitcoin and Gold Fall Ahead of Fed Decision

Crude oil prices surged on Monday, while Bitcoin and gold sank in value. The divergent trends come ahead of Wednesday's Federal Reserve rate decision.

Brent crude rose 2.75% to $107.48, with West Texas Intermediate gaining 2.51% to $102.56. Meanwhile, Bitcoin (BTC) declined by a significant margin, along with gold, silver, and copper.

The sharp increase in oil prices is attributed to a supply shock caused by the shutdown of Saudi Arabia's East-West pipeline after it was damaged by drones from Iraq. This disruption threatens up to 4% of global oil supply.

Market analyst Tony Sycamore noted that unless this week's talks in Oman produce something operational, crude oil prices may continue to rise toward $119.48, the high reached in early March.