Efforts are being made to solve the Ukraine Crisis. Several rounds of talks have taken place in Russia-Ukraine. But, so far these talks have been fruitless. Here, the massive impact of this crisis is beginning to be seen. Crude oil prices have crossed $115 per barrel.
On the other hand, there is a tremendous boom in all the major metals including Coal, Zinc, Aluminum, Copper. If this crisis is not resolved soon, there is a danger of inflation going up. This will have a direct impact on you. Everyday things will become very expensive.
Crude oil continues to rise. Its price has reached $ 115 per barrel. This is the highest price of crude since 2014. West-Texas Intermediate crude has also crossed the level of $110 per barrel. At the beginning of this year, the price of crude was $ 60 per barrel. It has climbed 25 per cent since the start of the war.
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With crude becoming more expensive, the transportation cost will increase across the world. This will have a direct impact on the cost of everything that is transported. This includes everything from fruits and vegetables to manufactured goods.
There has been a big jump in the prices of base metals. In February, the prices of major metals like aluminium, copper, zinc, lead have risen by 3.6 to 15 per cent. The biggest increase has come in aluminum. In the last one year, the price of aluminum has risen by more than 58 per cent. It is at its highest for many years. This is bound to have an impact on the prices of manufactured goods.
These metals are used as inputs in many industries. The auto sector is an example of this. Increasing their prices will increase the cost of the companies. Then they have to increase the prices of their products.
International coal prices have also shot up. Coal futures in Europe have risen to $260 a tonne. This will have a direct impact on many industries including power generation. India also imports better quality coal from many countries including Australia. Electricity will become expensive due to expensive coal.
In many countries including India, coal is still used a lot to generate electricity. Russia is a major producer of several base metals including aluminum and copper. Russia has been heavily sanctioned due to the Ukraine Crisis. So he will not be able to export the metal.
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