European Central Bank: Middle East Tensions and Russia-Ukraine Situation to Keep Future Oil Price Risk Elevated

BlockBeats News, August 27th. The European Central Bank noted that due to developments in the geopolitical situation in the Middle East, Ukraine, and Russia, the future risks to oil and gas prices remain high. The minutes of the European Central Bank meeting published on Thursday showed that despite the current oil price still being "far below recent highs" and the futures price curve weakening, "throughout the entire forecast period, oil prices remain far above pre-war levels, indicating a continued rise in oil prices with risks still skewed to the upside."

Furthermore, the European Central Bank pointed out that the recent decline in oil prices "has not alleviated the mid-term inflation path reflected in market pricing," and added that "inflation expectations remain anchored." The European Central Bank reiterated its commitment to fulfilling its mandate to maintain price stability and to "take timely action" to achieve the medium-term inflation target of 2%. (FXStreet)