Global commodity prices soar to 14-year record
Adam Samson in London
Global commodity prices hit the highest level since 2008 on Thursday as the Ukraine crisis intensified worries about global supplies of raw materials.
Agricultural commodities have gained sharply in price, which is expected to increase the cost of food, particularly in developing economies. Wheat prices in Chicago have risen almost 40 per cent this year, while soyabeans are up 28 per cent.
The S&P GSCI index, a broad measure of raw material prices, climbed 3.8 per cent in early London trading on Thursday, bringing its gains for 2022 to 37 per cent. West Texas Intermediate, the US oil benchmark, rose as high as $115 a barrel, a level it last struck 14 years ago.
 Meanwhile, the price of natural gas traded in Europe climbed 4.1 per cent to €180 a megawatt hour, leaving it just below the record it touched on Wednesday.
Agricultural commodities have gained sharply in price, which is expected to increase the cost of food, particularly in developing economies. Wheat prices in Chicago have risen almost 40 per cent this year, while soyabeans are up 28 per cent.
The conflict in eastern Europe has had large consequences on the oil market, with big consumers beginning to shun Russian oil at a time when supplies globally are already low.
“Following Russia’s invasion of Ukraine, the US was clear that it wanted the flow of oil and gas to continue unabated,” said analysts at ANZ. “However, due to a combination of financial sanctions and the increasing reluctance of companies to do business with Russia, supply is being impacted.”
ANZ estimates 5mn barrels a day of Russian crude “could be struggling to find a buyer”.
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