Rising Crude Oil Prices Propel Surge in Global Sugar and Rubber Prices, Because Even Your Sweet Tooth is Affected by the Oil Industry
The global impact of rising crude oil prices has taken its toll on the commodity markets; one such toll is the surge in global sugar and rubber prices, according to Nikkei Asia. Yes, you heard and read it right. Even your sweet tooth and rubber-soled shoes are feeling the pinch of increasing crude oil costs.
Understanding the Relationship Between Crude Oil and Commodities
Crude oil has intricate connections to the prices of other commodities such as sugar and rubber. The cost of production and transportation of these commodities is heavily dependent on crude oil prices. The increased cost of crude oil instantly raises the price tag of commodities reliant on crude oil production, such as sugar and rubber. The historic trends and patterns of crude oil prices impacting commodity markets demonstrate the relationship between the two entities.
The Surge in Global Sugar Prices
Sugar is one of the most heavily traded commodities globally. Sugar’s dependency on crude oil inputs, such as their fertilizer and transportation costs, has led to a surge in global sugar prices. Supply and demand dynamics, unexpected weather conditions, and governmental policies are also factors that currently contribute to the price increase in global sugar.
The Rise in Rubber Price
Rubber, another commodity indispensable to numerous industries, has also seen its price skyrocketing globally. The production and transportation costs of rubber skyrocketed after the hike in crude oil