Crude bullion base metals are seeing a boom everywhere due to the ongoing war between Russia Ukraine and America’s increasing toughness against Russia. The price of crude has gone beyond $130. So gold and silver are also working with a record speed. Trading on the LME has been halted for 2 days following a record jump in nickel prices. On the other hand, zinc is trading at a 16-year high, but aluminum has seen profit-booking.
Crude will be $300?
Crude oil prices have crossed $130. Today Brent has set a high of 131.64. Brent has gained over 11% since March 6. Up to 70% in 4 months. The price of WTI has crossed $126. WTI has gained over 9% since March 6. The price of crude on MCX has come out above 9700.
Why is the rise in crude continuing?
The war between Russia and Ukraine has reached the 14th day. The US has banned the import of oil and gas from Russia. After the US, the UK has also banned Russia’s oil and gas. Only America will not buy crude oil from Russia. Allies will not be involved in the Russia energy ban. Last year 10% of US oil imports came from Russia. The US imports the most oil from Canada with 57%.
‘No’ to Saudi Biden
Saudi will not increase the production of crude. In OPEC+ countries, 4 lakh barrels/day supply agreement has been signed till June. Saudi will not break the agreement with Russia. Russia is a member of OPEC+ countries. Saudi, UAE have denied talks with the US on this matter.
Where will the crude come from?
Looking at US, EU options for crude supply. US may ease sanctions from Venezuela.
Then gold crosses 2000 dollars
Gold has reached near 19-month high. Gold remains above $2000 for the third consecutive day. Today gold has touched the level of $2,068.40 on COMEX. Gold on COMEX has gained more than 5% since March 6. Silver on COMEX is trading above $27 for the second consecutive day. At the same time, the price of silver has risen by about 12.25% in March so far. The price of gold on MCX has come out around 55000. Gold has become costlier by 4750 on MCX since February 23. On MCX, silver has crossed 73000 for the second consecutive day. Silver has climbed around 8500 on MCX since February 23.
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Why did the prices rise?
If we look at the rise in the prices of gold and silver, then the US has banned the import of oil and gas from Russia. After the US, the UK has also banned Russia’s oil and gas. The UK has said that by the end of the year, Russia will reduce its dependence on oil and gas. Gold has got support due to increase in hedging against inflation. The US FED meeting is on March 15-16. Rates may increase in the meeting. During this period the price of palladium has seen a jump of 3%.
If we look at the movement of gold, this week gold has gained 6.5 percent, while this month gold has gained 13 percent. On the other hand, silver has seen an increase of 6 percent this week and 15 percent this month.
pressure in aluminum
Aluminum prices fell for the second day in a row. Aluminum on the LME is down nearly 7% in 2 days. The price of aluminum has come down to $3600. Market experts said the fall in prices was due to profit-booking.
Base metals in boom
Copper on LME is trading above $ 10000 for the second consecutive day. Copper price is up more than 7% in 2 months. Zinc remains at a high of 16 years. The price of nickel has crossed $101,000/ton. Nickel continues to rise due to a drop in supply. US’s strictness against Russia has led to a rise in base metal prices.
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