The fall in the world stock markets and the considerable rise in the price of oil are not the only economic effects that are causing the crisis between Russia and Ukraine, but they will also have repercussions in various sectors and, in particular, 4 will be the most affected premiums and we will tell you how it will impact your pocket.
This Thursday the main stock indices closed lower after Russia’s attacks on Ukraine, which also caused a significant rise in the price of oil, which exceeded $100 dollars per barrel, which increased the experts’ concern about the imminent rise in the price of gasoline.
Price volatility
Which can also undoubtedly bring an escalation of prices and volatility in various items and sectors, which you must take into account to protect your pockets from the economic impacts that can be generated .
And it is that on Wednesday night Russia began its attacks on Ukraine, which immediately had worldwide effects, and is hitting mainly the price of oil, due to the nervousness that exists if the government of President Vladimir Putin interrupts the supply of oil .
Since the situation is also reaching raw materials and especially four, which will undoubtedly impact the pockets of citizens, since they will register a greater increase.
The crisis between Russia and Ukraine strongly affects key raw material markets such as: aluminum, oil, natural gas and wheat.
Therefore, specialists urge investors to be prepared so that they can react in a timely to what can be presented worldwide.
Aluminum
A strong blow is estimated to be aluminum, a market that has been registering increases in recent times, only in terms of so far this year, has increased by 11%.
This increase in the price of aluminum will also impact household appliances.
And it is that Russia is an important producer of aluminum, which registered 3.7 million metric tons last year.
“It is inevitable that the rise in aluminum prices will have a direct impact on costs of this type of product, both from the most recognized brands and white ones… Especially those that have to do with cooking,” said Alfredo Rodríguez, an independent market analyst, according to what was published by Business Insider.
Specialists from Atlantic Capital estimated an increase between 3% and 4% in the price of aluminum, before Russia’s attack on Ukraine, now, the figures may increase.
Oil
Another of the great impacts, which has been one of the first to register a significant rise in its prices, is oil, which this Thursday opened with a higher price at $78 dollars per barrel.
This situation will undoubtedly cause an increase in the price of gasoline.
Russia is the third largest producer of oil on an international level and one of the main producers of natural gas.
According to data from Bloomberg, daily world oil production is 78 million barrels, of which 9 are from Russia and 11. 6 million from the United States.
Natural gas
Another input and raw material affected is natural gas, whose prices have been on an upward trend since recent months.
“Russia produced around 639,000 million cubic meters of natural gas in 2021, according to BP data, so the world production of natural gas reached around 3,854 billion cubic meters and prices will tighten upward with the military intervention in the Ukrainian country”, highlights the specialized firm Atlantic Capital.
Wheat
Russia and Ukraine are important markets for wheat production , a raw material that will also register an increase in its prices.
According to figures published by Business Insider, Russia produces about 80 million tons metric tons of wheat per year, while Ukraine has a production of 33 million metric tons.
Over the last year, US wheat prices have increased by 3%, which may increase after the attacks on Ukraine.
“Investors may have to endure greater volatility not only in stock markets, but also in some commodity markets as the situation between Russia and Ukraine develops, as is the case with wheat, that will affect the rise in the price of products such as cookies, bread or beers”, specify specialists from Atlantic Capital.
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–Russia Ukraine conflict: Nasdaq and Dow Jones collapse
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