Posted 24 Feb. 2022 at 10:01Updated 24 Feb. 2022 at 10:02
Thunderbolt on commodity markets on Thursday after Russian President Vladimir Putin launched a military operation to invade Ukraine. The scenario so dreaded by investors, an open war, causes a surge in the prices of all natural resources.
Brent, the European benchmark for oil, rose by 5.5% to 102 dollars. This is the first time since 2014 that the barrel has returned above this bar. Same trend for WTI, the American reference which costs 97 dollars. Gas delivered to the Netherlands also jumped 20% to 107 euros per MWh.
Russia represents about 30% of European oil supplies, it provides Europe with 40% of imported gas. Moreover, Ukraine is one of the main transit routes for gas between Moscow and the European Union. Gas being decisive for the price of electricity, the price of electrons is also soaring everywhere on the Old Continent.
Historic record for aluminum
Metals, copper, palladium, nickel… also reacted strongly to the announcement of the invasion. Aluminum took 4% to 3,430 dollars per tonne, a new all-time high. Not only is Russia one of the main producers in the world, but the production of aluminum is also very energy-intensive. the rise in electricity prices is fueling the rise in the metal.
Agricultural markets are no longer immune to the crisis. In Chicago, the bushel of corn gained 5%. Ukraine is a major cereal producer. As for the ton of wheat on the Parisian market, it returns to test the 300 euro mark. This Thursday morning it takes 3% to 294 euros.
Moscow, the world’s largest exporter, represents 20% of international wheat trade and Ukraine 10%. The two countries together thus control a good third of the international market on which the countries around the Mediterranean depend in particular.