JPMorgan Publishes Terrifying Take On What Ukraine Crisis Will Do To Commodity Prices
So far western media has been relatively silent on what the escalating Ukraine crisis means for western consumers when it comes to prices for everyday commodities such as oil, gas, wheat, corn (and gold, for the goldbugs), and with good reason: as the Russian ambassador warned, “ordinary Americans” are about to feel the pain. As such it is understandable that the pro-Biden media is hoping to avoid discussing the consequences to America’s checkbook from the escalation in Ukraine: after all, the last thing hundreds of millions of Americans want to hear is that already sky high prices are about to get even higher.
JPMorgan’s commodity desk, however, has no such political considerations and in a must-read note published earlier today by the bank’s commodity strategist team led by Natasha Kaneva (available to pro subs in the usual place), the bank writes that “geopolitical escalation over the last few days has materially increased the risk of further aggravating commodity market imbalances. At this stage of the conflict, it is hard to see a path towards an easy de-escalation.” Consequently, JPM now expects “a steady rise of tensions in Ukraine and a corresponding intensification of sanctions from the West.” In that case, the bank warns that “the world could see an extended period of elevated geopolitical tensions and high risk premium in all commodities given Russia’s far reaching impact on global commodities markets.“
First, JPMorgan looks at what the impact on oil could be and it’s not pretty.
Confirming what we wrote just two days ago in “Oil Prices Will Be Above $100 For A “Prolonged Period“, Kaneva notes that Russia has always been a reliable supplier of oil, even at the height of the Cold War…
…click on the above link to read the rest of the article…
