Overall, US stockpiles witnessed a 1% drawdown in oil prices. Other than that, gold prices are continuously increasing.
Besides soaring oil and gold prices, agricultural products are facing extreme volatility because of the Russian invasion of Ukraine.
Let us have a detailed look at the commodity prices today.
The oil prices have witnessed a whopping increase as the European Union has lately revealed its plan to ban Russian oil. In contrast, with the 110 USD per barrel yesterday, WIT oil was at 106.16 USD per Barrel at the time of writing. Over the past 7 days, it observed a 3.46% surge in its price.
The likelihood of no oil output increases by OPEC (the Organization of Petroleum Exporting Countries) and JTC (Joint Technical Committee) also affected the crude oil market. Though analysts are quite hopeful about the future of WTI oil, nothing could be predicted yet.
Brent Crude Oil
The analysts are forced to revise the predictions as the volatility of the commodities has been really unforeseeable for the past few weeks. Among the soaring oil prices, the market price of Brent crude oil reached 109.75 USD per barrel. Over the past 7 days, Brent oil increased by 1.45%.
As the news of the Russian oil embargo is flying in the market, oil prices are being affected accordingly. Though everyone can foresee the consequences of this tense situation, Europeans are ready to embrace it.
Natural gas is yet another commodity with surging prices. Analysts claim the price this week touched a 14-year high. The market price of natural gas was 8.57 MMBtu at the time of writing. In the last 7 days, its price surged by a whopping 21.18%.
One of the major reasons for this increase is the drop in the U.S. supply. Though the impact of this increasing price will not be visible to consumers, it can upset the market.
In contrast with the $1600 market price in March, this month started quite well for Gold. Today, the market price was recorded at 1876.32 USD per ounce with a 0.26% decrease. The market witnessed a rapid increase in the price, and the exchange chart was bent toward selling.
Analysts believe it can soar up to $1900 in the coming days. Some reasons for this increase include Russia-Ukraine tension, the US-China tussle, Powell’s publicly announced concern for inflation, and Fed’s unexpected balance sheet reduction.
Though today was a promising day for corn as there was an increase of 0.10% in the market price, analysts are foreseeing something concerning. Over the past 7 days, Natural gas increased by 21.27%.
Slower than expected plantings were recorded. Though current plantings come nowhere near the average 33%, it was also less than the predictions, which was 16%.
As corn is mainly produced in the Black Sea region, the Russian invasion of Ukraine has contributed to its volatility.
The commodity market is facing extreme tension because of several factors. The Russian-Ukrainian tension with the US-China tussle has made it difficult for analysts to predict anything.