Russia-Ukraine war: Commodities see biggest weekly surge in almost 50 years

Commodities (Representative image)

Commodities—from crude, nickel, aluminum to wheat—have seen their highest weekly surge since 1974, Bloomberg has reported, as the Russia-Ukraine war, which entered its tenth day on March 5, roils global markets and fuels fears of supply disruptions.

The US and its allies have slapped sanctions against Russia following its invasion of Ukraine that has threatened global growth recovery and also triggered one of the biggest refugee crisis of this century.

Russia’s growing isolation is blocking a major source of energy, metals as well as crops, instilling fears of prolonged shortages and accelerating global inflation, the report said.

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Wall Street banks, including Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co, have boosted their oil price forecasts, anticipating possible supply disruptions as commodity markets have put inflationary pressure on governments.

JPMorgan Chase expects Brent crude, could end the year at $185 a barrel if Russian supply continues to be disrupted, while Goldman Sachs raised its one-month forecast for Brent crude prices to $115 per barrel, up from $95.

Traders, banks and shipowners are avoiding doing business with Russia over likely payment delays as sanctions hit the country’s banking services, the report said. Shipping lines are shunning bookings from the region.

Also Read: Russia-Ukraine tensions: JPMorgan, Goldman Sachs, others raise crude price target as war intensifies

Oil has been rising on fears that the sanctions will disrupt shipments from Russia, which is the world's biggest exporter of crude and oil products combined.

US West Texas Intermediate (WTI) oil jumped as much as 5. 7 percent on March 4 before paring gains, as traders assessed the severity of a nuclear plant attack. Prices are still up about 22 percent this week.