Crude oil and wheat prices are rising as exports from Russia will be halted for a long time

Sanctions against Russia for its military invasion of Ukraine are being tightened daily, and international companies refuse to work with the aggressor, which will soon stop all Export-Import Operations.

This will make Putin, the authorities and Russian businessmen understand that in the 21st century, the civilized world will not allow war to start and bomb peaceful cities in the center of Europe, and all responsibility for the collapse of the Russian economy will be on their conscience. Russia’s military and business elites still have a chance to save Russia as a country for which they need to conduct a “bourgeois revolution”, overthrowing the false and corrupt government.

Oil and grain prices on world stock exchanges continue to rise, as the world sees that Ukraine does not give up and puts up a tough resistance, so the conflict will be protracted. It is also clear to everyone that oil and grain exports from Russia will not resume until it withdraws troops from the territories of Ukraine captured in 2014, including Crimea.

Yesterday, May Brent crude futures on London ICE Futures rose 6% to London 117/barrel (as of the morning of March 3), and April WTI crude futures on the New York electronic Mercantile Exchange (NYMEX)-5.5% to.114.5/barrel, adding 25% and 24.5%, respectively, since the beginning of hostilities. At the same time, prices for Russian Urals oil are falling amid a lack of demand, and the discount against the benchmark Brent brand has already reached a record рекорд 18/barrel. Despite the absence of direct bans on the Russian energy industry, most market participants do not want to take risks in the face of further uncertainty.

On Wednesday, OPEC+ agreed to increase oil production by 400 thousand barrels/day in April. However, it is not known whether producers will be able to do this, as according to the OPEC Joint Technical Committee in January, production was 972 thousand barrels per day lower than planned, as Iraq, Nigeria and other OPEC members could not meet quotas due to lack of production, investment or internal disagreements.

Wheat prices reached their highest level since 2008 due to the risks of grain supply disruptions due to the war between Ukraine and Russia.

Yesterday on the Chicago Stock Exchange, may wheat futures rose 7.6% to.10.59/bushel, and corn futures rose 1.3% to. 7.35/bushel or. 289.4/ton, the highest since 2013.

Ukraine and Russia are the world’s main exporters of agricultural products, providing 30% of world exports of wheat, 19% of corn and 80% of sunflower oil. Most of these goods are shipped through the Black Sea ports, which are currently shut down. Shipping companies do not yet accept requests for delivery to or from these countries.

On the US stock exchanges, March futures rose yesterday:

• by 7.6% or 2 27.56 / ton to 3 389.1 / ton for soft winter SRW wheat in Chicago,
• by 7.2% or 2 26.55 / ton to H 395/ton for hard winter HRW wheat in Kansas City,
• by 0.4% or 1 1.56 / ton to 3 388.8 / ton for hrs durum wheat in Minneapolis,
• by 8.8% or 3 31.5/ton to Чикаго 389.25/ton for Black Sea wheat in Chicago.

GrainTrade

Tags: Ukraine, Russia, prices, wheat, sanctions, crude oil