Commodities round-up: Crude oil price near 7-year high; gold, silver back in action

The crude oil price has come off its high but still trading close to a 7-year high. This is the profit-taking that has come in crude oil after the US administration pledges to continue to try to keep the crude oil prices lower. Also, the US inventories after declining for seven straight weeks have seen a modest increase of 1.4 million barrels. So these are the two factors that have led the prices down.

Apart from that everything else is quite bullish - whether it’s the International Energy Agency (IEA) report which said that the global inventories have continued to decline and the global crude demand could be reaching pre-pandemic (COVID-19) levels in this year itself.

However, the major run-up has come at gold and silver prices and both of these commodities are at a 2-month high. There is safe haven inflation buying here and concerns that central banks are not doing enough and then the geopolitical tensions seem to be supporting gold and silver as well. So after, very sluggish, many months gold and silver seems to be back in action.