How Global Events Affect Commodity Prices.
Commodity prices don’t move in isolation, they react quickly to world events. Wars, trade tensions, and natural disasters can disrupt supply chains, while economic growth or new technologies can drive demand. For example, geopolitical instability in oil-producing regions often causes fuel prices to spike. Similarly, the rise of electric vehicles has pushed up demand for lithium and nickel, key ingredients in batteries.
Australia, as a major exporter of raw materials, is deeply affected by these global shifts. When demand rises, it boosts exports and company profits. When it falls, it can slow economic growth. Understanding this link helps investors and citizens anticipate how international events may shape Australia’s economic outlook.