The European Union’s speculation about joining the US embargo on Russian oil supplies has once again pushed crude oil prices sharply higher. The price of Brent from the North Sea rose by almost eight percent on Monday to $116.46 a barrel. Added to this is a renewed attack by Yemeni Houthi rebels on oil facilities in Saudi Arabia, said analyst Jeffrey Halley from brokerage house Oanda.
Prices for other commodities also rose. A ton of aluminum cost a good four percent more at $3,522. The rally in the metal, which is used in aircraft and automobile construction, was triggered by the halt to Australian deliveries of aluminum oxide and aluminum ore to Russia, one of the world’s most important aluminum producers. The country is also the world’s top palladium exporter. The fear of failures in Russian deliveries increased the price of the precious metal required for the manufacture of autocatalysts by four percent to $2,594 a troy ounce. Meanwhile, the capers on the nickel market continued. The metal used in steel making fell by the maximum possible 15 percent to $31,380 a ton. Trading was temporarily suspended in early March when the price doubled to more than $100,000 due to the Russian invasion of Ukraine.
Meanwhile, speculation about a Russian default unsettled the markets. Investors on the Moscow stock exchange therefore parted with Russian government bonds, which could be traded again for the first time in almost four weeks. Conversely, the yield on the country’s 10-year debt rose to a record high of 19.14 percent. Investors are now wondering whether Russia can make the upcoming payments for its foreign currency bonds.