Overnight Market Review (Dec 08) Russian President Vladimir Putin responded to the recently introduced oil price cap of $60 per barrel by demanding that one gram of gold be exchanged for two barrels of crude oil.
At current market prices, the upper limit of $60 per barrel of Russian oil is equivalent to the price of one gram of gold. What is essentially happening here is that the U.S. locks in Russian oil exports at this price, and Russia, in response, locks it in a gram of gold. And that will happen at a time when the US is trying to replenish its strategic reserves with cheap oil.
Trading strategy deployment: it is recommended to short at high positions
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