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Fund managers are growing wary of inflation picking up

Fund managers are growing wary of inflation picking up steam again. Recent surveys show they're less confident in the idea that inflation peaked in early 2023. Factors like the ongoing war in Ukraine and persistent supply chain disruptions are fueling concerns that price increases could continue, prompting them to adjust their investment strategies accordingly.
Oil prices often rise during inflation due to factors like increased demand and potential supply constraints. By locking in a price for future oil delivery with futures contracts, businesses can hedge against inflation's impact on their oil-related costs. However, oil itself can be volatile, so this strategy requires careful management.
As of today, oil prices have shown some mixed movement recently. Here's a quick breakdown:
  • Short-Term: Oil prices haven't shown any significant upward or downward trends in the immediate term. There might have been slight fluctuations depending on the specific oil benchmark you're looking at (e.g., Brent Crude vs. West Texas Intermediate).
  • Volatility: The oil market remains somewhat volatile, with ongoing geopolitical tensions and uncertainty surrounding global economic recovery keeping a lid on any sustained price increases.
Tip. Our algorithms gave us Buy signal in the end of 2023, with potential goal of 102 USD.
Important Note: This analysis is based on readily available technical indicators and should not be considered financial advice. Always conduct your own research before making any investment decisions.
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