Posted Apr 27, 2022, 8:05 AMUpdated on Apr 27, 2022 at 9:09 am
Oil, gas, coal, cereals, oils, fertilizers, metals… The World Bank’s observation is clear: “The war in Ukraine caused a major shock on the markets for natural resources and changed the pattern of trade, production and consumption in the world”, explains the institution in its annual report on raw materials. The conflict between two raw materials giants has exacerbated tensions linked to the faster-than-expected post-Covid recovery.
The institution does not hesitate to draw a parallel with the oil shocks of the twentiethand century. “Overall, this is the biggest commodity shock we’ve seen since the 1970s,” said Indermit Gill, World Bank Vice President for Equitable Growth, Finance and Institutions. Energy products, such as coal, gas and oil, have seen their prices quadruple in the past two years, the biggest increase since the 1973 crisis.