Oil soared to the highest level since 2008 as buyers continued to shun Russian crude following its invasion of Ukraine, while OPEC+ is doing its best to ignore the war started by one of its key members. The invasion has sparked supply concerns across commodity markets from energy to grains, prompting consumers including China to scour the globe for raw materials.
The US and its allies have so far refrained from sanctioning Russia’s crude exports due to concerns about the impact of rising energy prices on consumers, but trade is seizing up as banks pull financing and shipping costs spike. Even before the invasion, American retail gasoline was at its highest since 2014. “There are real fears of a supply squeeze,” said Kim Kwangrae, a Seoul-based senior commodities analyst at Samsung Futures Inc.