Since the beginning of the Russia-Ukraine conflict, oil and gas prices have been moving very strongly upwards. Currently, Brent and WTI spot prices are hovering in a narrow band of USD 95 to 112 per barrel. That makes it very difficult for large energy consumers such as industry or public utilities to make their price calculations over several months. Of course, the underlying trend in prices continues to be upward, as inflation now affects all types of goods. There are currently high spirits at the Canadian oil producer Saturn Oil & Gas because the financial transformation of the last few months has been completed, and there is now a resource estimate that beats all expectations. An update.
The Ukraine crisis and its humanitarian catastrophe have shown the Western industrial nations that a singular dependence on fossil raw materials can become a serious supply threat in the event of a conflict. Economic weapons are used as leverage in today's warfare; sanctions are followed by supply bottlenecks and supply shortages. Political decision-makers now have these points clearly on the table. All the more reason for industry and consumers to join forces: alternative energies must be put on the table even sooner than expected. Now, Europe in particular must show that an economic union can also consistently pursue common paths to crisis management. Varta AG represents the German art of engineering and can make a big splash with its innovative approaches to energy technology. An update from Ellwangen.
Last year, fertilizer producer Kali + Salz already benefited from increased demand from farmers and sharply rising prices for potash, one of the most important mineral fertilizers for plant cultivation. Following Russia's war of aggression and the sanctions imposed on companies such as Uralkali and Belaruskali, which account for around one-third of production among themselves, supply is once again being minimized. As a result, the base price is rising to its highest level in ten years and is only just off its all-time highs of 2008. By focusing on its core business with potash and magnesium products, the MDAX company could thus benefit disproportionately in the future.
For wallstreet:online AG, the past fiscal year brought new records despite a slowdown in the boom of general stock trading. Thus, almost all issued group targets were surpassed. In terms of assets under management, the Company also rose to become by far the largest neobroker operator in Germany with more than EUR 8.8 billion. The internal targets for the current year 2022 are also ambitious. A new era is now to begin with Smartbroker 2.0. After the recent turbulence in the wake of the Ukraine conflict and the correction of the overall market, the wallstreet:online share lost significantly. This results in attractive long-term entry opportunities.
The armed conflicts between Ukraine and Russia have had a lasting impact on the commodity markets. In an already tense price situation, the US import ban on Russian oil is causing further distortions on the energy markets. The sharp sanctions imposed by many countries had caused Brent and WTI prices to rise to over USD 130 at times. It was not until the beginning of this week that prices eased again slightly to below USD 110. However, analysts and experts in conflict monitoring expect further uncertainties in the supply situation. The situation is aggravated by the fact that Iran is currently unable to increase its production due to stalled nuclear negotiations and OPEC is also still unable to significantly increase production. In the Canadian province of Saskatchewan, there is still one high-growth oil producer that is moving to new shores. Update.
Both politicians and industry are taking a high risk in order to achieve the climate targets. Fossil fuels are to be replaced by alternative energy sources as quickly as possible. In turn, the consumption of metallic raw materials is increasing in order to build renewable, energy-efficient systems. In addition to copper, cobalt and nickel, the demand for rare earth metals, which have to be imported almost entirely from China, is increasing dramatically. Now it is not only about the economic security of the West, but also its military security, as it is considered essential for the defense industry. The dependency is frightening given the currently escalating geopolitical tensions. Alternatives outside China are few and far between. A Canadian company could provide some relief in the supply chains, offering to supply around 10% of current global production in the near future. As explained below, the chances of this happening are extremely favorable.
Anyone looking for modern technologies, will find them at thyssenkrupp AG. After years of restructuring, the Essen-based group can report an initial positive conclusion: The transformation to modernity has been successfully implemented! The sale of non-core activities is not yet complete, but the measures of the transformation program are already taking effect. In its new form, thyssenkrupp AG and its subsidiaries are now a high-performing group with strong independent businesses. At present, the risks of significantly increased raw material prices and disrupted supply chains remain, but they should be manageable over time and no longer pose a threat to the medium-term outlook. However, the continuation of the armed conflicts in Eastern Europe directly impacts individual areas of the thyssenkrupp Group. We analyze the opportunities and risks.
In the debate about the spread of electromobility and the battery metals required, the focus is often on the raw materials lithium, cobalt and copper. Another key raw material is criminally neglected: nickel. Due to its specific properties, the metal is of central importance in implementing the energy and transport revolution. Demand for the raw material will continue to increase in the foreseeable future, and sufficient supplies of the metal will become increasingly critical. This is the hour of (prospective) nickel producers. One of these companies, which is currently under the radar of most investors with a stock market value of around CAD 15 million, is Power Nickel. The Company is focused on a high-potential battery metal project in Canada. The gold-copper assets will be taken public in the next few months as a spin-off in a separate company. This sharpens the equity story and should give the share positive impetus. In the short term, important newsflow is expected from the current drilling program at the battery metal project. A new resource estimate announced for the second quarter could provide the impetus for a significantly higher valuation of the shares.
Since Russian troops invaded Ukraine, the world has changed fundamentally. Hundreds of thousands of people gathered for peace demonstrations across Europe over the weekend, but a solution to the conflict seems frighteningly distant. On the contrary, with the exclusion of Russian financial institutions from the SWIFT system and further sanctions, the situation threatens to worsen. To ensure Germany's security in the future, the German government plans to release a total of EUR 100 billion for the German armed forces in 2022 via a special fund for investments and defense projects. In addition, at least 2% of gross domestic product is to flow into defense each year with immediate effect. This news is tantamount to reassessment for the Rheinmetall defense group, which already posted record results in 2021.
In around 20 years, industry, mobility, electricity and heat generation are to be completely climate-neutral, and fossil fuels such as oil, gas and coal are increasingly being replaced by renewable energies. In addition to wind and solar energy, policymakers are increasingly focusing on hydrogen as a source of energy. According to a study, experts such as the Hydrogen Council estimate that the invisible, odorless and non-toxic gas will have a market volume of USD 2.5 trillion by 2050. As a pioneer and leading manufacturer of fuel cells, NASDAQ-listed Plug Power aims to profit by building a comprehensive green hydrogen ecosystem that spans production, storage, delivery and power generation. The projections issued by management through 2025 sound euphoric. Yet some questions remain.