Crisis Russia Ukraine: The 4 most affected raw materials and how it will impact your pocket



The fall in the world stock markets and the considerable rise in the price of oil are not the only economic effects that are causing the crisis between Russia and Ukraine, but they will also have repercussions in several sectors and in particular the most affected raw materials will be 4 and We will tell you how it will impact your pocket.

This Thursday the main stock indices closed lower after Russia’s attacks on Ukraine, which also caused a significant rise in the price of oil, which exceeded $100 dollars per barrel, which increased the experts’ concern about the imminent rise of the price of gasoline.

price volatility

What can also undoubtedly bring an escalation of prices and volatility in various items and sectors, which you must take into account to protect your pockets from the economic impacts that can be generated.

And it is that on Wednesday night Russia began its attacks on Ukraine, which immediately had effects worldwide, and is hitting mainly the price of oil, due to the nervousness that exists if the government of President Vladimir Putin interrupts the oil supply.

Rusia is the third largest oil producer in the world and its effects are just beginning to be felt and has caused tension and concern at the international level.

Since the situation is also reaching raw materials and especially four, which will undoubtedly impact the pockets of citizens, since they will register a greater increase.

The crisis between Russia and Ukraine strongly affects key commodity markets as they are: aluminum, oil, natural gas and wheat.

Therefore, specialists urge investors to be prepared so that they can react in a timely manner to what may be presented worldwide.

The aluminum

A strong blow is estimated to be aluminum, a market that has been registering increases in recent times, only so far this year, it has increased by 15%.

This increase in the price of aluminum will also impact household appliances.

And it is that Russia is a major aluminum producer. which registered 3.7 million metric tons last year.

“It is inevitable that the rise in aluminum prices will have a direct impact on the costs of this type of product, both of the most recognized brands and of the white ones… Especially, those that have to do with the kitchen,” said Alfredo Rodríguez, analyst of independent markets, according to what was published by Business Insider.

Atlantic Capital Specialists estimated an increase between 3% and 4% in the price of aluminumbefore Russia’s attack on Ukraine, now, the figures can be increased.

Petroleum

Another of the great impacts, which has been one of the first to register a significant rise in its prices, is oil, which this Thursday opened with a price above $100 dollars per barrel.

This situation will undoubtedly cause a rise in the price of gasoline.

Russia is the third largest oil producer worldwide and one of the main producers of natural gas.

According to data from Bloomberg, daily world oil production is 78 million barrels, of which 9 are from Russia and 11.6 million from the United States.

Natural gas

Another input and raw material affected is natural gas, whose prices have been on an upward trend since recent months.

“Russia produced around 639,000 million cubic meters of natural gas in 2021, according to BP data, so the world production of natural gas reached around 3,854 billion cubic meters and prices will be pushed up with military intervention. in the Ukrainian country”, highlights the specialized firm Atlantic Capital.

The wheat

Russia and Ukraine are important markets in the production of wheat, a raw material that will also register an increase in its prices.

According to figures published by Business Insider, Russia produces about 80 million metric tons of wheat a year, while Ukraine has a production of 33 million metric tons.

Over the past year, US wheat prices have risen 3%which may increase after the attacks on Ukraine.

“Investors may have to put up with increased volatility not only in stock markets, but also in some commodity markets as the situation between Russia and Ukraine develops, such as wheat, which will feed into higher prices. price of products such as biscuits, bread or beer”, specify specialists from Atlantic Capital.

You can also read:

–Ukrainian conflict: You must moderate gasoline consumption, experts warn of imminent increase

–Attack on Ukraine: Barrel of oil exceeds $100 dollars, the highest level in the last 7 years

–Russia Ukraine conflict: Nasdaq and Dow Jones collapse

Source-eldiariony.com