#forexbreakfast Commodities – 01/03/2022
The general Bloomberg Commodity Index (0.7 percent) rose for the tenth week in a row, with commodity prices more sensitive to the Russian-Ukrainian theme remaining at high levels.
The ruble was unquestionably the central figure of the week. Due to the escalation of the conflict, the Russian central bank intervened by raising the reference rates to 20%. (from 9.5%).
The violent Russian attack in Ukraine and the declarations of OPEC + members indicating a desire to monitor future developments without increasing production in the short term (over 400,000b/d planned), have pushed Brent prices well above $100 per barrel. Last week’s high at 105.80 could represent short-term resistance, with a break pushing prices towards the next resistance at 112.83.
Geopolitical tensions have had very limited effects on copper, which currently has fewer supply-related issues than other metals such as aluminium. From a technical standpoint, there are no significant changes from what was noted last Monday.
Following the Russian attack in Ukraine, the LME has set a new historical record for aluminium, raising concerns about the metal’s supply in Russia due to the sanctions that will be imposed on the country. Resistance levels have formed at $ 3602/t (on the weekly chart) and $ 3432/t (on the daily chart).