Commodities round-up: Crude oil above $110/bbl

Crude oil prices at USD 110 per barrel, saw 10 percent of the gain in the market yesterday, March 1 and trading nearly 6 percent on the higher side and with every tick, the price is going higher.

The Brent has been surging; the US crude oil price is trading at USD 109 per barrel as well, so the markets are taking it up with the care that supply concerns could be coming in from Russia.

Traders already are reluctant to buy from Russia, they are facing payment and delivery concerns. 10 percent of Russian oil exports already are estimated to have been hit. Maersk already halted container movements to and from Russia. Britain has banned all ships with Russian connection and even as the US and Japan have released 60-70 million barrels from the reserves, it’s less than one day of global consumption and the markets are looking at further sanctions coming in and the fact that there could be further crude oil supply disruptions from Russia and that taking the price is higher.

It’s not just crude oil, aluminum prices at USD 3,560 per ton is an all-time high. There are sanctions on Russia from the US, European Union, UK and Russia provide nearly 15-20 percent of European Union annual metal imports and all of that seems to be getting impacted now.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.