Sean Kemery is an experienced commodities and currency portfolio manager.
Sean Kemery has noted that according to the World Bank, the conflict is causing upsurges in the prices of energy and non-energy commodities. Perhaps most notable to American consumers is the higher price of gasoline, breaking the $100-a-barrel barrier in Brent crude oil. As in the shortages of 1973, restrictions on trade, such as economic sanctions imposed on Russia, have reduced access to petroleum for Europe and America. Prices of oil, coal, and natural gas are expected to remain higher than the five-year average through 2024. Problems in the energy sector affect non-energy commodities such as food. Since natural gas is involved in manufacturing fertilizer, its rising costs have hurt farmers and forced them to raise prices. This trend has a ripple effect on agricultural economies that create jobs, especially for people with low incomes. The World Bank has recommended that national governments respond by reducing energy consumption and increasing efficiency. Assistance for people in poverty should be enhanced by public works projects and feeding more school-age children.
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AuthorAs a director and senior trader at Deutsche Bank AG in New York, Sean Kemery handles commodities trading and indexes. Archives
May 2020
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