July 2, 2022

Wheat prices have risen as US oil prices have risen to levels not seen in the past 14 years

U.S. oil prices are at their highest level since 2008, while the global Brent benchmark reached $ 120 a barrel, with signs of Russia seizing its first major Ukrainian city raising expectations of further sanctions.

West Texas Intermediate surpassed $ 116 a barrel, the last time it hit 14 years ago. International oil benchmark Brent crude rose to a high of 6 percent after 2012, up from 50 percent that year.

Wheat prices also rose above $ 11 a bushel for the first time in 14 years. Russian suppliers’ boycott has also hit natural gas, with European prices rising 15 percent on Thursday to € 199 per megawatt hour, a new all-time high.

These moves came after the Russian forces Ran too much The capture of Gershon, the provincial capital and Black Sea port, has not yet been confirmed by the Ukrainian military, but is said to have been carried out by the city’s mayor.

European stock markets opened higher as commodity-linked stocks rose with shares of technology groups whose earnings opportunities were considered low due to short-term economic trends.

The regional Stoxx 600 stock index, which has fallen more than 8 percent so far this year, fell 0.2 percent in early trading, but shares of oil producers rose and the subcommittee of basic commodities manufacturers rose 2.5 percent. Germany’s DAX was up 0.2 percent and London’s FTSE 100 was up 0.3 percent.

There is a global oil price Increased Despite the fact that Western governments have largely protected the Russian energy sector from sanctions imposed following the invasion of Ukraine.

“The market’s ability to access crude oil from the region due to the risk of disruptions or direct supply losses seems to be sustainable in the long run, based on ground facts,” said Louise Dixon, senior oil market analyst at Rystad Energy.

Wheat futures trading in Chicago also rose 13 percent to $ 11.32 a bushel as the conflict hit exports from Ukraine and Russia hard. Both countries account for about one-third of world exports.

Earlier in the day, Asian stock markets generally rallied, with US Federal Reserve Chairman Jay Powell pointing to the US Federal Reserve. Raise interest rates Ukraine gave the conflict even slower.

Hong Kong’s Hong Kong index gained 0.6 percent and Tokyo’s Nikkei 225 added 0.7 percent, while China’s CSI 300 lost 0.6 percent.

The move comes in response to Powell’s comments that the Federal Reserve is preparing to push up rate hikes for US lawmakers following Wednesday’s rally on Wall Street. The S&P 500 was up nearly 2 percent, while the Nasdaq compound was up 1.6 percent.

“The Fed wants to start tightening policy to control inflation but does not want to pacify investors shocked by Russia’s war,” said Mansour Mohi-udin, chief economist at the Bank of Singapore. Rising from the US Federal Reserve this year.