te Crude oil highest in last 7 years, aluminium at 13-year high - know what is boiling in the commodity markets? | Zee Business

Crude oil highest in last 7 years, aluminium at 13-year high - know what is boiling in the commodity markets?

While the equity markets have witnessed losses across the globe, the commodity markets are not without high action. Crude oil is at a 7-year high,  Ashish Chaturvedi, Research Analyst at Zee Business reports. 

Crude oil highest in last 7 years, aluminium at 13-year high - know what is boiling in the commodity markets?
Brent crude has seen a jump of 22% since the beginning of this year.

While the equity markets have witnessed losses across the globe, the commodity markets are not without high action. Crude oil is at a 7-year high,  Ashish Chaturvedi, Research Analyst at Zee Business reports. 

There are two reasons behind this - first is the ongoing political tension around the Russia-Ukraine crisis while the second is the opening of economies worldwide that has led to a big jump in the demand for crude oil.

Due to this, many brokers are speculating that Brent oil can go beyond 100 dollars. Targets are being given up to USD 120 and it is continuously growing.

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Brent crude has seen a jump of 22% since the beginning of this year.

Apart from this, natural gas has also constantly been in the headlines because of the Russia and Ukraine tension. Russia supplies about 40% of Europe's gas.

Domestically,  Gold has seen a significant upward move and crossed Rs 50,000 on MCX on Monday. 

Historically, whenever political tensions increase, people like to invest in gold for the safer side. So, there was an effect of this too.

Aluminium prices hit the highest in 13.5 years as Russia's dominance is also very high on the aluminium market. About 10% of the worldwide aluminum is produced and supplied by Russia.
Apart from this, Russia also has a 10% reserve of copper, so the impact is being seen here too.

With the political tension, inflation is also a big factor. In US Inflation is at 40 years of high. The inflation rate in India is also a cause of little concern.

That's why people are thinking it is safer to invest in commodities rather than the equity market for better results.

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Written By: ZeeBiz WebTeam
Edited By: Shivendra Kumar
Updated: Tue, Feb 15, 2022
01:45 pm
ZeeBiz WebDesk
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