Oil has hiked this year due to rising demand and the complex global implications of the Russian invasion. High energy prices contributed to runaway inflation, prompting central banks to raise rates and increasing investors’ fears that growth will slow. Last week, WTIUSD topped $111 a barrel after four weeks of gains, the longest upsurge since February. Due to that, gasoline and diesel prices hit record highs ahead of the start of the US auto season, which starts in about a week. Also, this weekend, Saudi Arabia, one of the world's top oil producers, has signaled that it will continue to support Russia's role in the OPEC+ group, undermining the US efforts to isolate Moscow for its invasion of Ukraine. At the same time, China has imposed a series of painful restrictions to quell Covid-19 outbreaks. The additional soaring in oil prices was caused by the weakening dollar, which made raw materials cheaper for holders of other currencies.
So, it seems like the oil influence everything!
