Oil Prices Diverge As Uncertainty Persists

Crude oil prices, which had been rallying on the news that Saudi Arabia will extend its production cuts, began trade on Wednesday with a slight decline before WTI jumped even higher while Brent remained in the red. Uncertainty in oil markets has traders struggling to balance economic risks with supply cuts, although those aren’t their only concerns. A new analysis by the Financial Times suggests that the rising cost of capital is keeping prices depressed while leaving the market more vulnerable to shocks in the future. On the supply side,…