Inflation accelerates among looming commodities prices

News of the day, Friday, March 11

Oil prices fall for a second day in a row after President Vladimir Putin pledged Russia will stand by its energy commitments to any oil consumer, even countries that have imposed sanctions after the invasion in Ukraine. Russia exports about 10% of world crude consumption. The United States has been especially passionate in punishing Russia — Joe Biden has announced a complete ban of Russian energy sources import. On the other hand, Europe is not going to replicate such measures, since 40% of its gas needs are covered with imports from Russia. The trendy concepts of green energy are not yet capable of interchanging fossil fuels, so a Russian energy ban would have been a pain for European countries.

Asian stock market continues its global dive on Friday, against the backdrop of the fastest US inflation for 40 years. Besides inflation, such a negative scenario is indeed thrust by Russia’s war against Ukraine. Many analysts blame assault in Europe for looming inflation and bearish market trends, since everything from metals to agricultural goods become more expensive — both Russia and Ukraine are significant exporters of a vast selection of commodities.

The price of Brent crude is $110.50, WTI — $107.14, GBP/USD — 1.3095, EUR/USD — 1.1000, and gold costs $1985.00 per ounce.