Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Avalos
Author-Name: Wenqian Huang
Title: Commodity markets: shocks and spillovers
Abstract: Dislocations from the Russia-Ukraine war have buffeted commodity markets from both the financial and real sides. We argue that a substitution of Russian oil exports would be difficult, implying that restrictions on these exports may result in large and persistent price increases for oil-related products. Surging oil prices may be partly moderated by an increased use of biofuels, but this in turn could push up the prices of the staple crops that are biofuel feedstocks. In addition, persistently high prices for natural gas, key for electricity generation, could extend the recent electricity price hikes for final users – a strong headwind for all economic activity, especially industrial production.
Journal: BIS Quarterly Review
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2209b.pdf
File-Format: Application/pdf
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2209b.htm
File-Format: text/html
Year: 2022
Month: September
Classification-JEL: Q02, Q43, G10
Handle: RePEc:bis:bisqtr:2209b