Its Over, page-18891

Geopolitics is also playing out with Saudi and Russia extending oil production cut surprising traders which led to the rise in oil price. US has lost its leverage with Saudi to help manage Oil price and that is a setback in this current inflationary environment.

High oil price can only weigh negatively on resource (including gold) stocks that are in production by raising their input and production cost.

Macro headwinds for resource stocks:
1) China deflation
2) Recession risk
3) High oil price
4) Climate factors affecting production output
5) Higher labour costs
6) Industrial action
7) Decrease in labour productivity (Covid)
8) Environmental/regulatory hurdles
9) Jurisdiction risks