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BCOM index level

 

This chart shows the Bloomberg commodities index price level, from January 6, 2010, until March 1, 2022. The first data point came in at 145 in January 6, 2010. From here, the index dropped to a trough of 122 by June 4, 2010. Then, it rose to an all-time high of 175.4 on April 29, 2011. From there, the index declined to 126.8 by June 1, 2012. Here, it rapidly rose to 152 by September 14, 2012. From there, it gradually declined to 122.3 on January 9, 2014. Then, it rose to a relative peak of 138.7 on April 29, 2014. Here, it dropped to a trough of 72.9 by January 20, 2016. Then, it rose to 89.9 by June 8, 2016. Here, it declined a bit before rising to 89.4 by February 10, 2017. Then, it declined again to 79.4, before rising to another relative peak of 90.5 by April 18, 2018. From there, it gradually declined to 81.6 by January 6, 2020. Here, it dropped to an all-time low of 59.6 by April 27, 2020. From there, it rose to a relative peak of 105.8 by October 25, 2021, before settling down at 95.5 on December 15, 2021. From there until recently, it rose to 119.29 by March 1, 2022.

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Top Market Takeaways Quick shot: The energy market is under pressure

Published Mar 03, 2022
The Know Top Market Takeaways

The Bloomberg commodities index tracks prices of a basket of commodities (think of oil, natural gas, corn, wheat, copper, gold, and so forth). And, lately, prices have been soaring. Let’s break it down.

 

Russia produces ~12% of the world’s oil and ~17% of natural gas, while Ukraine exports ~13% of global corn and ~12% of wheat. Since the start of last week, prices skyrocketed. Oil prices, for instance, rallied and WTI is now trading above $111/barrel for the first time since 2011 and the Bloomberg Commodity Index had its largest rally since 2009 yesterday.

 

So, what’s the issue with higher prices? Well, 40% of Europe’s natural gas and 27% of its oil comes from Russia, and 30% of that energy is transported through Ukrainian territory. The United States, on the other hand, imports just 1%-3% of its oil and gas from Russia. Thus, it seems like higher energy prices will be harder on Europeans than they will be on Americans.

 

High energy prices could keep inflation high, making it even harder for central banks as they seek to promote economic growth.

COMMODITIES CONTINUE THEIR CLIMB

Line graph of BCOM index level
Source: Bloomberg Finance L.P. Data is as of March 1, 2022.
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All market data from Bloomberg Finance L.P., 3/2/22.

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