Commodity shock spreads beyond oil as diesel, LNG, metals surge

September 18, 2026 at 09:06 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Global commodity markets face a broad price surge, with diesel, LNG, gold, copper, and aluminum all rising sharply in August. The increase is driven by renewed US/Israel-Iran tensions, Bab el-Mandeb security risks, and attacks on Russian energy infrastructure. The shock is transmitting cost pressures across sectors, from freight to retail shelves.

Key Facts

The broad commodity index rose 4.5% in August, according to September assessments by international commodity research organizations.
LNG prices jumped 15.9%, gold 8.4%, copper 5.5%, Brent crude 5%, and aluminum 3.1% in August.
US diesel prices exceeded $6 per gallon, reaching a historic high.
Singapore diesel refining margins rose from about $15 to $70 per barrel compared to pre-war levels.
Brent crude futures for November traded at $102.99 per barrel, down 1.7% from the previous close, as of 09:25 on the report date.

Broad Commodity Surge

International commodity research organizations reported that the broad commodity index rose 4.5% in August. LNG gained 15.9%, gold 8.4%, copper 5.5%, Brent crude 5%, and aluminum 3.1%. Iron ore, coking coal, and lithium declined, reflecting continued weakness in China's real estate and steel demand. Products tied to energy security and electrification rose, while classic industrial raw materials were pressured by growth concerns.

Diesel and Refined Products

US diesel prices surpassed $6 per gallon, reaching a historic high. Diesel is a common input for transportation, agriculture, mining, construction, and logistics. Singapore diesel refining margins climbed from about $15 to $70 per barrel compared to pre-war levels. The rise signals that physical product shortages have become a more serious risk than crude oil itself.

Natural Gas and LNG

Damage at Qatar's Ras Laffan facility and significant disruption of LNG flows through Hormuz pushed Asian LNG prices to more than double pre-war levels. Europe entered the autumn-winter season with storage levels 10-12 percentage points lower than previous years. Europe is competing with Asia for the same limited LNG cargoes. Expensive gas raises costs for electricity, chemicals, glass, ceramics, metals, and fertilizers. LNG tightness is accelerating a shift back to coal, with energy security overtaking climate goals.