Commodities rack up more stunning gains as supply fears deepen

Commodities rack up more stunning gains as supply fears deepen

Commodities racked up more scorching price gains at the start of another tumultuous week as Russia intensifies the crisis in Ukraine, which Citigroup says is “transformative” for energy, metals and crops markets. The Russian invasion is shaking up raw materials because the nation is a heavyweight supplier in so many areas. With the US talking to its allies about a possible embargo on Russian oil supplies – and the Kremlin vowing to finish its mission in Ukraine – a prolonged period of volatility and uncertainty looms, ramping up inflation concerns and posing fresh challenges for monetary policy. Commodities are already coming off a record-breaking week, when prices of everything from energy to metals and farm products jumped 13 per cent to a fresh record, according to the “Expectations for commodities are challenged and transformed by the military activities under way in Ukraine – and have inevitably become more bullish,” Citigroup wrote in its quarterly update on raw materials. “No matter what the outcome, the world will have changed whenever the current conflict reaches a point of stabilisation.” Brent crude surged as much as 18 per cent after opening on Monday, while nickel jumped 19 per cent and wheat slammed into