Bloomberg Commodity Spot Index nears 62-year record

The Bloomberg Commodity Spot Index (BCSI), which includes quotes from 23 commodities, is on track for its strongest weekly gain since 1960, Report informs referring to Bloomberg.

This index rose by 2.35% to 615.76 points. Since the beginning of the week, it has grown by 8.63%.

“Bloomberg’s gauge of raw materials is closing in on the biggest weekly gain since at least 1960 as banks, importers and shippers steer clear of Russian exports,” the agency writes.

The index has been rising continuously since December. During this time, it increased by 26.4%. Analysts attribute this jump to the increased risk of supply disruptions, which has increased markedly after the escalation of the situation between Russia and Ukraine.

“We’ve never seen such steep and sudden commodity price spikes across so many assets,” said Henning Gloystein, an analyst at Eurasia Group. “Until there’s significant de-escalation, the record or elevated prices due to sanctions and disrupted supply chains will continue for many commodities.”