Commodities post record weekly gain of 13% on Ukraine invasion
BNN Bloomberg
Commodity prices soared the most on record this week as Russia’s invasion of Ukraine threatens key supplies of energy, crops and metals that were already tight as major economies emerged from the pandemic.
Commodity prices soared the most on record this week as Russia’s invasion of Ukraine threatens key supplies of energy, crops and metals that were already tight as major economies emerged from the pandemic.
The Bloomberg Commodity Spot Index, which tracks 23 futures contracts, climbed 13 per cent in the week ended Friday. That’s the most in data going back to 1960.
Russia’s growing isolation has left traders rushing to secure alternatives to the country’s raw materials, sparking fears of prolonged shortages and accelerating global inflation. The sanctions coupled with shipping disruptions in the Black Sea have brought trade deals with the country to a virtual standstill. Russia is a major supplier of crude, natural gas, grains, fertilizers and metals such as aluminum.
Russia and Ukraine also supply more than a quarter of world wheat exports, a fifth of corn sales and a similar share of barley shipments, plus about 80 per cent of sunflower oil cargoes.
Europe depends on Russia for about a quarter of its crude oil and a third of its natural gas. Russian aluminum typically accounts for about 10 per cent of U.S. imports.
