Oil Surge – Brent Crude oil has continued its rise, reaching $120USD a barrel this morning, a more than 50% increase since the start of the year. The highest price seen since May 2012. The energy sector as a whole has seen a significant rise as energy prices are pushed higher of the back of the war in Ukraine.
Interest rates – Chairman of the Federal Reserve, Jerome Powell, is proposing a 25 basis point increase in interest rates at the March meeting. The announcement saw bond yields rocket, with the five-year bond yield rising a massive 18.5 points, and the ten-year bond yield jumping 13 basis points.
Iron Ore – Iron Ore has continued its rally this week, topping $150USD a tonne due to hopes of rising demand in China and increased factory activity. The price increases has helped to almost double Australia’s trade surplus.
Australian Wheat – Australia Wheat exports are tipped to sore as South East Asian mills look for back up suppliers. Together, Russia and the Ukraine account for 30% of global wheat exports, with increasing sanctions being placed on Russia, and commercial shipping largely stopped in Ukraine, consumers will need to look elsewhere for wheat supply.
Energy Transition – The worlds largest asset manager, BlackRock has underlined the need for an accelerated transition to greener energy amid soaring coal, oil and gas prices. Crude oil is at its highest price since 2014, European gas hit a record high in December and coal prices have risen 80% in the past three months.
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