More commodities volatility expected as Russia troubles persist: analysts
THE ongoing turmoil in Russia could bring about more volatility in the commodities space – particularly in crude oil, natural gas and grains – as the country’s stability hangs in the balance, analysts polled by The Business Times warned.
A crisis was briefly avoided on Sunday (Jun 25), as an aborted mutiny in Russia by the Wagner mercenary group gave investors a brief reprieve, but the commodity giant’s geopolitical problems and mounting tensions could once again cause a stir in commodity prices.
Vishnu Varathan, Mizuho Bank’s head of economics and strategy for Asia, said geopolitical risks tend to have a “significant impact” on commodity prices due to adverse supply shocks.
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