The largest commodities supply shock in decades: The MUFG Global Markets Podcast

The global economy is now facing its largest commodities supply shock since the 1973 oil embargo. The stratospheric breadth and velocity of the moves in commodity prices since the Russian invasion of Ukraine is structurally altering the contours of policymaking and corporate strategy.

Ehsan Khoman, Head of Emerging Markets Research (EMEA), believes that the permanency of such pivots, with entities lining up to exit Russia and Europe now placing energy security above energy transition priorities, will reshape the landscape for the coming decades.

In the near-term, he holds conviction that with the sheer ambiguity of how the conflict will end, as well as how extreme shortages in energy, metals and the agricultural space will be resolved, the world could be heading into a recession.

 

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