Fears of supply disruption cause metal prices to rise, aluminum sets a new record.

The prices of commodities increased broadly on Thursday due to concerns about a supply interruption following Russia's invasion of Ukraine.

Russia is a significant producer and exporter of not only energy but also metals and grains. Prior to the invasion, markets were already tight, limiting their capacity to absorb any output reductions.

JPMorgan warned clients that with base metals inventories already running low, any additional supply disruptions, whether from Russia or higher gas and power prices, would have little cushion to absorb the impact.

On the London Metal Exchange, nickel reached a record high of $3,450 per ton, an increase of more than 3%. Currently, nickel is trading at its highest level in over a decade, around $25,000 per ton.

jumped more than 2%, while surged more than 6%.

Russia is a major contributor to the global supply of all four metals, including 35% of palladium and 10% of platinum, as per Cru data. Additionally, the country produces 6% of aluminum, 5% of nickel, and 4% of crude steel.

According to Commerzbank, aluminum and nickel are experiencing growth despite concerns about potential supply disruptions from Russia due to sanctions and countermeasures.

In over nine years, wheat prices reached their peak, and corn futures also increased.

The U.S. oil benchmark, West Texas Intermediate (WTI), surged more than 8%, reaching a high of $100.54 per barrel, while the international benchmark, Brent crude, traded above $105.

RBC stated on Thursday that while no physical supply disruptions have occurred yet, there are significant worries that Russia may limit commodity exports in retaliation to US sanctions.

The White House has made it clear that it will not target the Russian energy sector and worsen an already tight supply situation, except for the Nord Stream 2 pipeline project, which has already been stopped.

jumped 4.6% to trade at $4.835 per million British thermal units.

In Europe, the move was more extreme, with prices increasing by more than 50%. Approximately one third of Europe's natural gas comes from Russia.