Hey folks, given the Russia-Ukraine war situation, we’ve decided to share some graphs that might explain the effects that people like us could face.
[Food] Consumers around the world will feel the “enormous impact” of Russia’s war on Ukraine through sharply higher food prices and significant disruption to agricultural supply chains, according to industry executives and leading European officials.
There will be increased risk of “spiralling inflation” in the cost of wheat, corn and other commodities — prices of which were rising before the hostilities because of drought and high demand as economies emerged from the pandemic.
- John Rich, executive chair of MHP, Ukaraine’s leading food supplier.
Over60: FT
[Oil] The White House ban on imports of Russian petroleum into the US, was announced on Tuesday. Brent oil settled 4 per cent higher at $127.98 a barrel on Tuesday, a day after hitting its highest intraday level since the global financial crisis, while US petrol prices hit a new high. The US is by far the biggest petroleum market in the world, with consumption of about 20mn barrels a day. Total US imports of crude and fuel amounted to 8.5m b/d in 2021 and Russia accounted for about 8 per cent of them.
The greater the loss of Russian oil from the market, the higher the oil price will go. The uncertainties have raised the prospect that oil could soar past its previous record high of $147 a barrel in 2008 — close to $200 a barrel when adjusted for inflation. Cuneyt Kazokoglu, head of oil demand at consultancy FGE, said the supply shock akin to 1979 could leave the world “on course for another severe global recession”.
Over60: FT