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Oil, gas and wheat prices on the rise after Putin’s speech

  • Post category:Economy News
  • Reading time:2 mins read

Crude oil prices rose Wednesday morning after Russian President Vladimir Putin’s speech declaring partial mobilization. The same was true for gas and wheat.

Both oil of the Brent variety from the North Sea – which has a direct influence on the price at the pump in Belgium – and American oil thus became 2% more expensive, to arrive at respective prices per barrel of more than 92 and over $85. A further escalation of the conflict could jeopardize oil supplies and further reduce the supply of Russian gas, in particular via the gas pipeline crossing Ukraine, traders fear.

On the main Dutch futures market, natural gas saw its price increase by more than 5%, to reach more than 203 euros per megawatt hour. An escalation of the conflict could also further complicate the export of Ukrainian grain, which is currently transported to the world market through a humanitarian corridor crossing the Black Sea.

This is possible thanks to an agreement between Russia, Ukraine, Turkey and the United Nations. An escalation of the conflict threatens to jeopardize this agreement. The price of wheat therefore also went up on Wednesday morning after President Putin’s statements. It hit $9.08 a bushel in the Chicago futures market, the highest level since July. Wheat has also become significantly more expensive in recent days.