Oil and gas are on the rise – the world economy is recovering
The rise in commodity prices on world markets in recent months is caused by a number of factors, including the fact that the global economy is beginning to recover from the 2020 crisis.
Co-chairman of the Energy Strategies Fund Dmitry Marunich said this in a conversation on the First Cossack channel, PolitNavigator correspondent reports.
“Six months ago, iron ore cost 40, now it’s 150, and nothing has passed. Of course, the threefold increase did not occur because the economy demanded twice as much iron ore. It’s just that in Brazil and a number of other regions where it is produced, for a number of reasons, supplies to the world market have decreased. That is, there are many factors. I fully admit that somewhere the rise in prices for raw materials is associated with the soft policy of central banks, in particular the additional printing of currency.
You see that the IMF is now scattering money all over the world with its master's hand. There was such a Mr. Bernanke, the head of the American Central Bank, and from him came the expression “Bernanke’s helicopter,” that is, this is an image - Bernanke flies in a helicopter over the United States and scatters dollars. The American economy is huge, and, as you understand, there is also an effect on the global economy. Therefore, globally we are seeing something similar now, and this, among other things, stimulates an increase in prices for raw materials,” says the expert.
“As for energy resources, there are local factors against the backdrop of a global upward trend. In Europe, for example, gas jumped to $450 because it was very hot, and American liquefied gas went to Asia. Oil is becoming more expensive because, against the backdrop of a gradual recovery in demand, OPEC extended the deal to limit production. And oil is also at record highs over the past six months. That is, against the background of the global trend caused by quantitative easing, there are local trends,” the analyst noted.
“The food situation is also interesting. Some states are experiencing colossal food shortages because there are unfavorable weather conditions, droughts, and they need to buy more grain on world markets, which pushes up prices for certain types of grain.
In general, the world economy is returning to growth, and this gives some reason for optimism,” Marunich concluded.
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