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Altering Trade Patterns Disrupt Commodity Flow

Dalal Street Investment Journal

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May 09. 2022

The increase in commodity prices in the last two years has been the highest since the oil crisis of 1973. Due to this, a shift towards costly trade patterns has set off, delaying the clean energy transition.

Altering Trade Patterns Disrupt Commodity Flow

According to World Bank's latest Commodity Markets Outlook report, the war between Russia and Ukraine has jolted the commodity markets. Changing global trade patterns, production as well as consumption will keep prices at historically high levels throughout 2022 and continue the same till the end of 2024.

The price rise in food commodities, of which, Russia & Ukraine are large producers, and the fertilizers, which depend on natural gas as a production input, have been the highest since 2008.

The surge in commodity prices during the first quarter of 2022

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