Commodities

Opec will regret taking on the US

Production will be cut. Supplies to the rest of the world will be curbed. And inflation will rise just a little bit higher. No one ever expected the oil-cartel Opec(+), led by Saudi Arabia, to be friendly to the West, or to help out when it was needed. Even so, its decision this week to effectively side with Russia, and to make the energy crisis even worse, may quickly backfire. In reality, Opec was already in long-term decline. Picking a fight with the US will just make that worse. It was certainly the kind of news the energy markets didn’t need. Just as it was getting over the loss of Russia’s crucial

How much is Europe (still) paying Putin for oil?

When sanctions were imposed on Russia there was a big exception: Europe was still buying and paying for oil – leading to a bizarre situation. The West was doing everything it could to help Ukraine while still sending Putin hundreds of millions of dollars a day. But how much was that revenue worth to the Kremlin? As sanctions began to hit Russia, the price of Brent crude (the oil benchmark) soared to $130 a barrel, the highest since the 2008 financial crisis: an increase of over 90 per cent. It’s fallen since then but today it’s still sitting between $107 and $115 dollars a barrel – well above where it had been weeks

The commodity kings: have traders finally discovered a moral compass?

Many people around the world were glued to their screens in horror on 4 March, as they watched Russian shells raining down on Ukrainian cities. On a trading floor in central London, the oil traders at Shell were also glued to their screens – but watching the price of Russian oil. It was becoming a lot cheaper than normal (Brent) oil, due to the understandable reluctance to support Putin. But then again, everyone has their price. The Shell traders watched, and waited, as every minute the price was lowered further– to a $23 a barrel discount, then a $24 discount, then a $25 discount. Finally, at around 4 p.m., the

Which European countries are most reliant on Russian gas?

High commodity Nickel trading was suspended this week after prices rose to over $100,000 per tonne – double its previous peak of $50,000. How do other commodity prices compare with their peaks since the 2008 financial crisis? Previous peak Silver $43 Brent crude $140 Gold $1,853 Aluminium $3,124 Tin $33,015 This week Silver $26 Brent crude $139 Gold $2,050 Aluminium $3,849 Tin $50,025 Short squeeze The extraordinary rise in nickel prices was partly caused by a ‘short squeeze’, where investors try to exploit bets by other traders that prices would decrease. What notable stocks have experienced squeezes – and how much did their prices increase? Year Rise 1923 Piggly Wiggly