Shares of BHP Group Limited (ASX:BHP) traded higher on Wednesday (9 March 2022) at AU$48.630 per share on ASX at 11:32 AM AEDT.
The stocks of the ASX-listed iron ore company had closed 3.67% lower on Tuesday.
Ukraine crisis has created an upheaval in l Australian as well as the international stock markets. Though the impact of the Russian invasion on Ukraine has not been that significant on the ASX, nothing can be said as of now, given the uncertainty prevailing in the current situation.
In light of the ongoing war between Russia and Ukraine, BHP Group CEO Mike Henry has said that volatile commodity prices continue to have a "dramatic" impact on businesses. Mike Henry also flagged inflationary concerns due to Russia's attack on Ukraine.
There has been a surge in the prices of oil, metal and other commodities as the geopolitical tension has intensified. The BHP CEO said in an interview at the Australian Financial Review Business Summit in Sydney on Tuesday that "there's a huge amount of uncertainty".
Various countries have shifted towards Australia to fulfil their export demands after sanctions have been imposed on Russia and blacklisting of Russian commodity exports. This has resulted in a drastic increase in demand for BHP's oil, iron ore, gas, Uranium and nickel.
Henry has reportedly said that the company predicts 0.5% lower global growth than earlier expected. He, however, added that the demand-led inflation would be positive for the company as it will result in a higher demand for resources and thus push prices. He stated that BHP had downgraded its global growth forecasts given the extreme commodity price boom that had resulted post the invasion of Ukraine two weeks ago.
Crude oil prices soared to $139 a barrel on Monday, their highest since 2008 after US Secretary of State Antony Blinken mentioned that the US and European allies are mulling to impose a ban on importing oil from Russia.
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