The geopolitical turbulence and market volatility putting downward pressure on the stock market is working out just fine for the commodities market, which languished for years under slow economic conditions and a general trading malaise.

Aluminum and alumina market dynamics have turned favorable after recent events,leading to supply vacuum of 2.8mtpa of metal (Rusal and Hydro) and 8mtpa of alumina(from the world’s largest alumina refinery in Brazil owned by Hydro, and alumina refineries of Rusal in Ireland, Ukraine and Jamaica).

The sharp rally in crude began in the middle of 2017 around $44/bbl and has rallied all the way to above $72/bbl.

Oil surged today close to 3.5-year peaks on simmering Mideast tensions and keen US demand, while London stocks rose with drugmaker Shire boosted by a reported takeover move. World oil prices extended yesterday's gains on the back of data showing a drop in US stockpiles -- indicating improved demand -- and expectations that a Russia-OPEC output cap deal will be kept in place.

Nickel futures in Shanghai surged to the highest in almost three years on Thursday, tracking a rally in London prices the session before in what analysts said were misplaced concerns that the metal would also be hit by US sanctions.

Crude oil prices advanced by 1.25 per cent to Rs 4,526 per barrel at the futures trade as speculators increased their positions, tracking a firm trend in global markets.

Comex gold futures dipped slightly on Thursday weighed down by a firmer dollar and a decline in global geopolitical tensions, breaking a string of gains for four successive sessions.

Oil prices on Thursday remained close to highs touched the previous day that were last seen in late 2014, buoyed as US crude inventories declined and as top exporter Saudi Arabia is expected to keep withholding supply to prop up the market.

Market participants are, in fact, worried that the commodity will continue appreciating to new highs, which would spell trouble for Indian markets.

Oil prices rose on Thursday to their highest since the end of 2014 as U.S. crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies.