Jakarta, CNBC Indonesia – The Russian military is reported to have returned to the barracks, cooling Russia-Ukraine tensions that had heated up. This has made commodity prices volatile again. Some are sinking, but there are also stable and even rising.
Russian President Vladimir Putin confirmed that the Russian Defense Ministry had withdrawn troops and infrastructure and supporting facilities from the Ukrainian border. This was conveyed by Putin at a press conference with German Chancellor Olaf Scholz in Moscow, yesterday.
Putin said Russia “of course” does not want war. According to him, Russia is ready to find a solution with the West.
“Regarding war, do we really want war? Of course not. That’s why we made a proposal for negotiations, the outcome of which must ensure fair security for all, including our country,” said Russian President Vladimir Putin. Reuters.
Jens Stoltenberg, Secretary General of NATO, welcomed Russia’s positive signal. “There are signs from Moscow that diplomacy will continue,” he said, as reported Reuters.
This development brought relief to the world. If the conflict subsides, then the threat of World War III can be avoided.
The war tensions decreased, making the rally in commodity prices cool. Commodities driven by the threat of war fall.
Oil
World crude oil prices fell by 3% in yesterday’s trading due to easing world war sentiment.
Yesterday (15/2/2022) the price of Brent oil closed at US$ 93.28 per barrel, fell 3.32%. While that kind of light sweet or West Texas Intermediate (WTI) the price closed at US$ 92.07 per barrel, down 3.55%.
Just so you know Russia is one of the largest oil producers and distributors in the world. So when there is a conflict in Russia, the price of oil will be affected.
Launching BP Statistical Review data, Russia is the world’s number 3 largest oil producer with production of 10.7 million barrels per day (bpd) in 2020. This is equivalent to 12.1% of total world oil production.
Coal
Coal has a close relationship with world crude oil prices. This is because of its status as an energy commodity. Therefore, the decline in oil prices spread to coal prices.
Yesterday (15/2/2022) world coal prices closed at US$ 215.4/ton, down 2.09% compared to the previous day’s position.
Asset safe haven
Asset safe haven such as gold and silver will be hunted by investors when there is a threat of war. Cause asset safe haven can protect the value of money from falling economic uncertainty due to geopolitical conflicts.
In addition, the prices of gold and silver in general tend to be stable so that they are the choice of investors to secure their assets.
However, if the conflict subsides and causes the war to be canceled, investors begin to release assets safe haven and switch to riskier assets such as the stock market. So the price of gold and silver will tend to go down.
Yesterday, the world gold price in the spot market closed at US$ 1,853/troy ounce, down 0.92% compared to the previous day’s closing price.
Silver prices were more severe, falling 2.06% compared to the previous day to US$ 23.34/ounce.
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Foto: Refinitiv gold and silver- – |
Nickel
In contrast to oil, nickel actually strengthened even though Russia had an influence on price movements.
Russia is the third largest nickel producer in the world with production of 280,000 tonnes in 2020, according to Statista data. So that it has an influence on the movement of world nickel prices.
However, supplies that continue to run low have made nickel prices strengthen in today’s trading. On Wednesday (16/2/2022) at 13:46 WIB, nickel price was recorded at US$ 23,425/ton, up 0.57% compared to yesterday’s closing price.
CPO
CPO prices fell, dragged down by oil prices. Because CPO can be processed into biodiesel which can be used as a substitute for fuel. So that when oil prices weaken, CPO prices will be depressed.
On Wednesday (16/2/2022) at 13:42 WIB, the price of CPO on the Bursa Malaysia was recorded at MYR 5,516/ton, down 2.49%.
(ras/vap)
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