Commodity Prices Inflated by 40% by Risk Premiums, Analyst Says
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Prices for some key raw materials are substantially inflated and could fall a “long way” if and when concerns ease about the Russian invasion of Ukraine, according to research firm Capital Economics Ltd.
The prospect of supply disruptions stemming from international sanctions have added about 40% to prices for oil, aluminum and copper, Kieran Clancy, a Capital Economics analyst, wrote in a note to clients. Similar premiums probably are swelling agricultural commodities futures, he noted.