Rising oil and gas prices have been a huge topic for several weeks now. The Ukraine conflict, the associated halt to Nord Stream 2 and fears that Russia could turn off the gas tap completely indicate that the price rally in energy supply is far from over.
But oil and gas are by no means the only commodities whose prices are virtually exploding, as the price of wheat is also rising relentlessly. Likewise, the gold price and the price of silver are benefiting from the dicey situation.
Permanently extremely high oil and gas prices?
High energy prices have been making headlines and fueling inflation for months now. The Ukraine conflict is putting further pressure on the price spiral, as the final halt to Nord Stream 2 is opening up new energy gaps, not to mention the possibility that Russia, in response to sanctions, will in turn completely stop supplying gas to Western Europe and Germany in particular.
This scenario has not yet come to pass, and Gazprom has even been supplying more gas to Europe since the beginning of the armed conflict in Ukraine than before. In particular, gas deliveries to Germany and Italy have actually increased significantly since the beginning of the war.
However the situation with regard to gas supplies from Russia may develop, experts assume in any case that gas prices will remain at an extremely high level for a long time to come, causing both high inflation and a slump in economic growth.
Oil prices are also likely to remain high in the longer term. On the one hand, Russia is one of the largest oil exporting countries; on the other hand, risk premiums are assessed on the oil market. In this way, prices are deliberately kept high on the oil market for fear of possible supply shortfalls.
Experts therefore expect oil prices, like gas prices, to remain at a high level for some time to come.
Rising wheat prices
However, oil and gas are not the only commodities whose price development has been enormously affected by the Ukraine conflict. The wheat market has also been hit hard. Russia is the world’s largest wheat supplier, followed by Ukraine.
Due to the war in Ukraine, the wheat market has been thrown into great turmoil and prices are rising significantly. As a result, prices for many foodstuffs will also increase significantly.
Gold and silver – the big profiteers
The fact that safe assets such as gold and silver are in high demand in times of crisis has always been the case. The current conflict situation is no different. Gold and silver prices are properly fueled by the war in Ukraine, so that currently the prices for the precious metals reach completely new heights.
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