Jakarta, CNBC Indonesia – The Russo-Ukrainian war has lasted more than 40 days. The possibility of this war will be prolonged so that it will have a negative impact on the world economy.
In the economic aspect, Russia and Ukraine’s strategic position in the world commodity market poses a special risk. Oil, natural gas, coal, wheat, sunflower ore, to soybeans come from both countries.
War certainly makes production and distribution hampered. Not to mention Russia has been subject to economic sanctions by the United States (US) and its allies. The ban on oil and coal exports is an example, making supply in global markets even tighter.
The results are clear. Commodity prices soared.
The reference coal price in the ICE Newcastle (Australia) market throughout 2022 has shot up 97.36%. In the same period, the price of Brent oil soared 32.14%.
Not only energy and mining, food commodity prices are also ‘floating’. For example wheat. Since the end of 2021 (year-to-date), wheat prices on the Chicago Board of Trade rose 37.3% on an annual basis point-to-point.
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