Oil climbs to $107 a barrel for first time since May as bond yields jump
AI Market Summary
Brent crude's jump to $107 alongside a hotter PPI print reinforces energy-driven inflation risks and lifts global rate expectations. With markets pricing a higher probability of a Fed hike and the ECB turning more hawkish, sovereign yields are rising sharply, tightening financial conditions and pressuring equities. Elevated diesel/heating fuel costs also raise the risk of broader pass-through into consumer inflation, keeping cross-asset volatility elevated.
Impact level
● High
Affected assets
NCCO1OILBRENT2USD/USDT+6.04%
AI Insight · NCCO1OILBRENT2USD/USDTAI Insight
▼ Bearish
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Oil rose to $107 a barrel on Thursday, its first time above that level since May, as bond yields jumped. U.S. wholesale inflation increased 0.4% from June to July and was up 5.4% from a year earlier, reinforcing expectations the Federal Reserve will keep raising rates, with markets pricing about a 75% chance of a hike next week. U.S. stocks fell, with the S&P 500 down 0.6%, the Nasdaq composite down 0.7% and the Dow Jones Industrial Average off 350 points. Yields also moved higher after comments from Trump about giving a $5,000 “dividend” to all U.S. adults.
