March 3, 2022
Overview of the global commodities market
New all-time highs set

There are supply problems in the world commodity market caused by the aggravation of the Russian-Ukrainian conflict. Against this background, the cost of many goods has increased markedly.

For the first time since 2013, Brent oil prices exceeded $118 per barrel: on March 3, 2022, May futures traded at $118.02. The cost of WTI exceeded $114 ($114.59). Demand for the Urals, on the contrary, fell significantly due to the sanctions imposed against Russia, and its discount to Brent reached a record high ($15 per barrel).

Oil prices are affected by fears of new sanctions and, as a result, even greater supply disruptions and shortages, as well as the results of yesterday’s OPEC + meeting, where it was decided to continue increasing production by 400,000 barrels per day.

Gas prices are also rising. On Wednesday, a historical record was set – the cost per 1,000 cubic meters was $2,226. At the opening of today’s trading, gas was traded at $2065.9.

The growth of these stock quotes was provoked primarily by soaring oil, as well as Western sanctions against the Russian Federation. In general, according to market data, gas has grown by 59.4%.

The historical maximum was updated by the cost of aluminium. The price per ton rose above $3600 to $3643. Nickel has risen in price to a maximum since 2011 – $26,788.5 per ton. Metal prices are mainly rising on fears of accelerating global inflation.

“I believe that the situation with expensive raw materials will last until the end of the special operation, as well as until the normalization of the situation with payments in Russia. If the conflict continues to escalate, next week we will be able to see extremes in oil and other raw materials,” said Andrey Syrchin, CEO of CRESCO Capital.