Commodity Prices Oil Prices Rises Amidst Concerns About US-Russia Tensions
West Texas Intermediate (WTI) crude reached its highest level since December 2014, extending gains after the US Energy Information Administration’s weekly report showed an unexpected drawdown in oil inventories.
New York/USA (Bloomberg) -- A key gauge of commodity prices has reached its highest level in two and a half years as oil rises and concerns about US-Russia tensions boost industrial metals.
The CRB commodity index rose more than one percent on Wednesday, touching 201.88, its top level since October 2015.
“While oil is certainly a main contributor today, nickel is spiking by more than 10 % on worries that a furtherance of Russian sanctions will hit Norilsk Nickel, the world’s second-biggest producer,” Peter Boockvar, chief investment officer at Bleakley Financial Group LLC, wrote in a note Wednesday.
The metals market, meanwhile, has been thrown into turmoil by US sanctions against United Co. Rusal, the largest aluminum producer outside China. Aluminum has risen more than 25 % in the last ten sessions to the highest level since August 2011 amid a scramble by consumers, manufacturers and traders to secure supply. Now, nickel is following in its footsteps.