A sharp rise in Commodity prices has rattled the two powerful rivals, China and the United States. It has resulted in intensified efforts from both nations to combat the trend.This will be the very first time that the Chinese government will enter a part of the nation’s strategic oil reserves into the market.
China’s 7.38 million barrels of petroleum will be bided on September 24. The objective of these sales is to relieve the pressure imposed by increasing raw material prices to some extent. It is an unusual step for the country to intervene in the market, which the Chinese government typically refrains from doing. It suggests that the country’s economy is slowing rapidly, trapped by the rallying Commodity prices.
Soaring Commodity prices have witnessed a sudden rise in prices of crude oil, petroleum futures, and food commodities. Energy resources and prices directly affect the supply chain of many manufacturing and processing industries, food being one of the major ones.This week New York witnessed a rise in the West Texas Intermediate crude oil futures, closing at $72.61 per barrel. It was a significant rise reporting a 90% hike as compared to earlier this year. Industry components and raw materials, energy resources and fuels, and food commodities are big challenges for the power rivals.