was as high as $97.63/bbl overnight and remains above $94 at the open. The equity markets are looking through the implications of higher gasoline and petrochemical prices. All the major indexes opened strongly in the green, all industry sectors are green, led by energy (+1.4%), and the has fallen 5%. 

The bond market is also brushing aside the inflation risks of oil prices staying higher. Yields are down 1 to 2 basis points across the US Treasury yield curve today, though also markedly higher for the trailing month; the 2-year is 20 bps higher, the 10-year 12 bps. The Fed Open Market Committee meets this week, and we will hear from Powell on how they view the energy situation. 

In other commodities, gold and silver are…