Crude oil boils over to top $100/bbl, gold on a high – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/todays-paper/crude-oil-boils-over-to-top-100bbl-gold-on-a-high/article65082178.ece

Crude palm oil surges to record levels; wheat and corn, also, zoom

The energy market got surcharged and the bullion market dazzled on Thursday morning after Russian President Vladimir Putin’s announcement of a military operation in Ukraine set off panic reactions in the commodities market.

The development also left the edible oils market on the boil as crude palm oil (CPO) prices shot up to a record with spot prices rising above 7,000 Malaysian ringgits (MYR), while players in the grains market turned nervous as wheat and corn prices zoomed.

The energy market was the first to feel the heat as Brent crude oil topped $100 a barrel for April futures. By 8 pm, Brent crude for April delivery stood at $104.31, up over 7.5 per cent on the Intercontinental Exchange (ICE). WTI crude oil hovered near $100 at $99.10.

Gas futures in Europe were on fire with TTF gas March futures skyrocketing over 41 per cent to 126.14 euros per megawatt-hour and UK gas March futures vrooming 43.5 per cent to £306.14 per therm.

Sparkling bullion

Gold, the haven asset during geopolitical crisis, was another major beneficiary on the day. Spot gold prices briefly courted $1,970 an ounce before losing some lustre at $1,935 at 8:15 pm — up over 2 per cent. On India’s MCX, gold April contracts ended 3.7 per cent higher at Rs. 52,243 per 10 grams.

Silver prices gained over 2.5 per cent at $25.09. On MCX, April silver contracts increased by over 4 per cent at Rs. 68,350 a kg. Palladium, too, was up 4.6 per cent at $2,602.85 as its supplies could be affected since Russia is the top producer.

CPO at new high

In the edible oils market, CPO went past the magical 6,000-MYR mark. The May contracts on the Bursa Malaysia Derivatives Exchange closed 7.96 per cent higher at 6,458 MYR, its biggest daily rise in almost 14 years. Spot CPO ended at a record high of 7,093 MYR.

Soybean May futures on the Chicago Board of Trade up at nearly $17 a bushel, while Black Sea sunflower settled at $1,444 a tonne.

The grains market, too, reacted sharply. On CBOT, wheat March futures increased by over 5 per cent to $9.20 a bushel, while corn March contracts were up over 3.5 per cent.