Oil tops $ 100 after Russia’s move on Ukraine

Friday, 25 February 2022 02:57 - - {{hitsCtrl.values.hits}}

LONDON (Reuters): Commodity prices jumped to multi-year highs yesterday after Russia invaded Ukraine, raising the prospect of tighter supplies due to the possibility of sanctions on Russian exports, transport disruptions and Moscow withholding supplies.

Russia launched an all-out invasion of Ukraine by land, air and sea yesterday, the biggest attack by one state against another in Europe since World War Two.

It supplies 10% of the world's oil, a third of Europe's gas and, together with Ukraine accounts for 29% of global wheat exports, 80% of sunflower oil exports and 19% of world corn exports.

Russia is the world's largest supplier of palladium with a 40% market share. It accounts for 10% of global nickel supply and 6% of aluminium supplies.

Oil rose above $ 100 per barrel for the first time since 2014, UK and Dutch gas rose about 40%-50%, wheat jumped to a nine and a half year high, corn to an eight-month peak and aluminium soared to record highs.

In precious metals, palladium prices jumped to seven-month highs and gold climbed to a near 18-month peak as investors switched to safe-haven assets.

Western countries are set to unveil coordinated and tough sanctions on Russia yesterday – with banks likely to be first in line.