Why commodity prices are surging

Oil prices touched their highest level since 2008 — surging past $130 a barrel — after US President Joe Biden banned crude, gas and coal imports from Russia on Tuesday, in retaliation for Moscow's invasion of Ukraine.

Wheat and other soft commodities are also rising on supply concerns, as both Russia and Ukraine are big producers. There is already a knock-on effect on food costs. Metals, including aluminium and nickel, are experiencing similar record price jumps and industries such as car making will feel the pinch.

There has been a feeling of chaos these past few days on global markets.
Joining hosts Mustafa Alrawi and Kelsey Warner, Ole Hansen, head of commodity strategy at Saxo Bank, explains how we have arrived at this point and how long the price rally might last. He also discusses the impact on the green transition and the success of climate action, with energy markets in turmoil.

In this episode:

The market's reaction since the Russia-Ukraine situation (0m 39s)
Alternative agriculture suppliers (6m 54s)
The gap between the financial and physical markets (9m 55s)
What will happen to the energy transition? (16m 01s)

 

Read more on our website:

• Russia-Ukraine conflict to have 'severe impact' on global economy, IMF says

• Oil prices jump as US bans Russian crude imports

• IEA to release 60 million barrels of oil from emergency stocks

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