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Crude Oil, Gold, Wheat Prices Surge As Russia Attacks Ukraine

The price of crude oil is at a seven-year high, gold prices are also moving northwards along with some agricultural commodities.

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Pink Floyd (Photo credit: Twitter/@pinkfloyd)

Russia launched a military offensive against Ukraine. The attacks on key Ukrainian cities have spooked the markets around the world and several commodity prices have skyrocketed, including gold and crude oil. The price of crude oil is at a seven-year high, gold prices are also moving northwards along with some agricultural commodities.

Skyrocketing Crude Oil Price 

The global benchmark crude Brent surged to $99 per barrel on Tuesday. Fearing the disruption in the supply of crude oil due to the war between Ukraine and Russia, the price is expected to rise further. 

With elections underway in five Indian states, the prices of diesel and petrol have been static for the last 110 days even though the domestic fuel price is directly proportional to the international crude rate. According to the experts, while the prices will be hiked after the elections, there will be an impact of the war in Ukraine too.

Sunflower oil prices might also rise in the coming days as Ukraine is one of the major producers of the same. It is expected that export from Ukraine of sunflower oil will be disrupted resulting in the price of this edible oil soaring in the Indian market. 

Wheat Price

Both Russia and Ukraine are big suppliers of wheat and the war between them will definitely affect the price of the food item in the domestic market.

Agricultural Commodities

The commodities that will see a severe impact on their prices include palm oil, soya bean and corn. Their prices are at a seven-month high. The price of palm oil has already reached an all-time high of Rs 1.81 lakh per tonne on the Shanghai Futures Exchange as reported by Zee Business.

Gold And Other Metals

Prices of gold, aluminium and nickel have also started to increase as Europe stares at war clouds. These metals will continue to face inventory shortages due to the Russia-Ukraine war. Russia’s Rusal and Nornickel are two of the world’s largest producers of aluminium, and nickel and palladium.

After China, Russia is the world’s second-largest producer of aluminium. Aluminium prices have reached their highest level in 13.5 years, while nickel prices have reached an 11-year high, as reported by Zee Business.

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