War in Ukraine adds to price and supply pressures on oil, metals; other items show mixed patterns
The war in Ukraine and the West’s response are likely to have multiple effects on construction materials costs and availability. The most immediate impact is likely to be on diesel fuel and gasoline prices. The national retail average price of on-highway diesel fuel was $4.05 per gallon on Monday, the Energy Information Administration reported on Tuesday. That was an increase of $1.08 (36%) year-over-year (y/y) and the highest level in almost nine years. By Thursday, the futures price for heating oil (a close proxy for diesel fuel) had jumped 12 cents per gallon over the week. In addition, “Russia is an important producer of copper and aluminum,” the Wall Street Journal reported on Wednesday. “Any difficulties getting those commodities to customers worldwide would cause fresh disruptions to strained supply chains.” Cargo ships in the region have been halted or delayed.
Read more…AGC Data Digest Feb 25 2022