Yahoo Finance's Ines Ferre joins the Live show to break down how commodities are moving in early trading.
BRIAN CHEUNG: A lot of market action going on. So let's just dive right into it with Yahoo Finance's Ines Ferre who has the breakdown. Good morning, Ines.
INES FERRE: Good morning, Brian. And you were just talking about the market action. I just want to point out what's happening with the oil market right now, because we are seeing a substantial pullback when it comes to WTI and Brent crude. Take a look at our chart. In fact, WTI right now trading at multi-week lows, at a two-week low.
Part of the factors to include here, you've got further rounds of talks in Ukraine, Russia that took place today that will continue tomorrow. You have Ukraine's president over the weekend saying that discussions with Moscow are becoming more substantive. And you also have the lockdowns in parts of China that is creating risks on what will happen with a demand for oil going forward because of those new lockdowns.
So you've got Brent crude that's down 7%. What a difference a week makes because just seven days ago last week you had Brent that was trading much higher, you had WTI that was trading at around $120, $125 a barrel range for the day. So quite a difference from last week. You've got WTI now touching $100 a barrel. Brent crude down at about $104 a barrel, Brian.
BRIAN CHEUNG: And there's obviously a lot of movement in metals over the last week. Palladium still very much elevated. Is that right?
INES FERRE: Well, palladium is pulling back from its highs from last week. You had in fact, on March 7 just a week ago palladium that was under pressure. But still very much elevated, as you say. Year-to-date, palladium up 32%. But you're seeing this pullback today because of a couple of reasons. You've got Russia's biggest exporter producer of palladium that's saying that it is able to get its cargo, find alternate routes for its cargo because the air links with Europe have been disrupted.
You've got this producer that's still saying that they are able to get their cargo, their supplies over to their clients, their customers. And then you also have this risk that analysts are talking about a recession in the second half of this year. So if that were to happen, then what you would see is a dampening of demand for palladium.
Automakers use a lot of palladium for their catalytic converters. But there's also been a talk about automakers switching to platinum, which is a less expensive metal in order to do that. So all of these factors are taking-- that's why you're seeing palladium taking a hit today. But overall, you still have palladium that has been a rallying year-to-date, Brian.
BRIAN CHEUNG: Thanks, Ines. Yeah, metals very much in vogue. We'll explore that a little bit deeper into detail. But thanks again for breaking all that down for us.