Why the Black Sea matters to commodity markets

Why the Black Sea matters to commodity markets

London: The Black Sea - a major artery for the movement of commodities at the crossroads of Europe and Asia - is suddenly drawing the world’s attention as the conflict in Ukraine unfolds. Half a dozen countries touch its shores, though it’s vital to many others beyond, for the trade of energy, steel and agricultural products. Crude and refined oil products from Russia, Azerbaijan and Kazakhstan pass through export terminals on the sea’s eastern edge. On the west lie countries that depend on ships hauling crude to meet their energy needs. Known as one of the world’s breadbaskets, the region supplies tens of millions of tons of grain and vegetable oils annually from its ports. Ukraine is an important source of steel for Europe. Crude is exported from three major oil terminals along the eastern coast of the Black Sea in Russia and Georgia. Most of the crude at risk from a break in shipments from these facilities doesn’t originate in Russia, but comes from further afield. Kazakhstan’s exporters have the most to lose from any disruption to tanker traffic in the Black Sea. The CPC terminal, located just to the north of the Russian port of Novorossiysk, handles about