In a surprise televised speech at 6 a.m. Moscow time on February 24, Russian President Vladimir Putin announced the opening of a special military operation in Donbass, eastern Ukraine, which pushed up oil prices. surpassing the threshold of USD 100, the world aluminum price nearly touched the threshold of USD 3,500/ton, setting a new record price of this metal.
Minutes after Putin's announcement, NBC News reporters in the Ukrainian capital Kiev said they heard explosions in the city. CNN reporters in Kharkiv, a Ukrainian city near the Russian border, also heard artillery fire.
In the latest statement, US President Joe Biden condemned Russia's actions and said he would announce further sanctions against Russia within the next day.
Russia's latest move has pushed world oil prices to surpass $100 per barrel for the first time since 2014, raising concerns among analysts that it will be a blow to growth prospects and increase inflation risks.
Graph of Brent oil price in the last 6 months, with a peak of nearly $ 105 per barrel established today. Photo: Bloomberg
In the face of tension in eastern Ukraine, many countries have declared their readiness to join the member countries of the International Energy Agency (IEA) to open oil reserves in case prices are affected.
Along with the price of oil, the price of natural gas also increased sharply.
Russia is the leading energy exporter to Europe. Tensions with Ukraine could lead to European sanctions against Russia, making the energy crisis worse.
Commodity markets have been tense for the past few days. Besides gas and oil, wheat, corn, aluminum and nickel are also affected by the escalating conflict between Russia and Ukraine. Investors are concerned about the possibility of a major disruption in supply should a war break out.
Aluminum is a metal that consumes a lot of energy in the process of smelting from ore to ingot raw materials to producing aluminum products. Any production of this metal requires the use of energy or fuel. The sharp increase in fuel prices has contributed to the high aluminum prices.
Aluminum prices are setting new records, approaching $3,500/ton after Russia announced the opening of a special military operation in Donbass on the afternoon of February 24, 2022 (Vietnam time).
Russia is the world's third largest aluminum producer and its exports could be affected by possible sanctions and retaliation. The decrease in supply could lead to an increase in the price of aluminum material, which in turn affects all sectors of the economy, such as construction, packaging and above all, the automotive sector.
Oil prices, gas prices surged and worries about sanctions against Russia - an aluminum producing powerhouse pushed aluminum prices on the London Exchange (LME) this afternoon (Vietnam time) soaring to 120 usd/ton at the opening of the 24/2 trading session. There was a time when the aluminum price reached 3,491 USD/ton, nearly touching the 3,500 USD mark.
Previously, at the beginning of winter 2021, when the fuel crisis in Europe was high, analysts forecast aluminum prices could reach $4,000/ton.