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Brent rose above $106 a barrel and U.S. crude futures surpassed $104 for the first time since 2014. The rally reflects concern that sanctions on Russia will curb supply from one of the largest global producers.
Inventories worldwide were already tight.
Sanctions-driven supply risk in a market with low inventories pushes crude prices higher, which lifts energy and freight costs for feed producers. Higher energy prices also make biofuel feedstocks more valuable and pull support into vegetable oil and grain markets.
bloomberg.comDevika Krishna Kumar, Michael RoschnottiMar 1, 2022After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
