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Brent crude oil has erased the entire pandemic decline - and has pushed above $60 per barrel

The rise in rechargeable batteries is now about national security and industrial protection. The control of such mineral and its manufacturing process is needed for the imminent EV future so protecting access to it because like protecting oil in the early 2000s. China produces the majority of lithium batteries, and Australia and Chile produce the mineral in largest quantities. In other news, Lithium is also used to treat Bipolar disorders. Source: WSJ

Economic optimism and supply cuts have seen oil jump towards a 1-year high. Gold on the other hand is heading lower due to a stronger dollar and higher bond yields. But has the spread got to extreme ?

Global food prices have reached their highest price point in seven years. The trend initiated by the Covid pandemic has been supported by a lower US production as well as increase in China's food imports. The disruption of the shipping industry is also a supporting factor, with cargo tending to cost more. While we are not yet at the high levels reached in the 2000s, this trend could be a concern in the long term. “It could become a big issue for less prosperous countries which depend on imports for food,” said Abdolreza Abbassian, senior economist at the UN Food and Agriculture Organization.

Futures in New York rose for a fifth day toward $57 a barrel. OPEC+ has pledged to keep draining a virus-driven surplus as inventories from China to the U.S. shrink. Saudi Arabia defied expectations for a reduction and left oil prices unchanged for Asian customers in another sign of market strength. Crude is up almost 9% this week, aided by a rally in global stocks as corporate profits rebound and central banks remain supportive. Technical indicators suggest oil is due for a pullback, though. The 14-day relative strength indexes for both Brent and West Texas Intermediate futures are at overbought levels.- Bloomberg