Afghanistan Conflict and Commodity Trade

 

Afghan War and Commodity Trading

Hi, I am Rowan Relton, I am a dedicated trading professional from Australia. Today I will talk about the impact of the Afghanistan conflict on the commodity market.

 

We all are aware of the situation that is going on in Afghanistan between the Taliban, it needs no introduction. The situation between the two is not affecting Afghanistan but the entire world is facing consequences. Some consequences related to commodity are for the short term but others will remain for quite a long time, says Rowan Relton – commodity trader. 

 
Short Term Consequences 

Afghanistan shares a border with some countries that produce large quantities of raw products and goods, for instance, Afghanistan shares its borders with Iran that is a big producer of oil, iron, and copper. Iran produces 2.7 million barrels of oil every day. Afghanistan also shares its borders with Pakistan and Uzbekistan. Both Pakistan and Uzbekistan produce nearly 2 million tons of cotton per year. Newly self-appointed Taliban government has stopped the imports and exports from India and Pakistan but Afghanistan is not capable of producing large quantities of goods on its own so the ban will not last long enough. So the prices of commodities that India and Pakistan export will eventually be back to a more stable price, says Rowan Relton.

 

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