Oil to surge above the $100 level on harsh sanctions on Russia – TDS

FXStreet Insights Team FXStreet

In the opinion of strategists at TD Securities, oil is set to shoot into $100 territory should Russia supply risks materialize.

Aluminium, nickel and palladium could also spike

“Is the risk that the US and much of the Western world will impose very harsh sanctions on Russia which could crater global supply, in the event that it invades Ukraine. This would no doubt cause a significant shortage across many global delivery points (including the US), as US shale and other producers are in no position to fill the gap. This would likely spike prices well above $100/b for key benchmarks.”

“Other commodities with large Russian supply and energy components which are already in a very tight market, such as aluminium, nickel and palladium, could also spike in an event broad sanctions are imposed on Russia.”

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FXStreet Insights Team

FXStreet

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