Erste Asset Management

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Continuing Oil Price Rally Leads to new Multi-Year Highs
Continuing Oil Price Rally Leads to new Multi-Year Highs
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Continuing Oil Price Rally Leads to new Multi-Year Highs

Crude oil prices continued to soar in the past week. The background to the oil price increases lies in the rising demand for oil combined with the ongoing economic recovery and fears of tight supply. The price surge in recent days was triggered by a drop in oil reserves reported by the US government on Wednesday.

Stagflation – a serious risk scenario
Stagflation – a serious risk scenario
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Stagflation – a serious risk scenario

In recent months, the risk of stagflation (the simultaneous occurrence of economic stagnation and inflation) has increased. Without the pandemic, output would be higher and inflation lower: bottlenecks in production and logistics have slowed economic activity and caused prices in the goods sector to rise sharply.