OLOXF - Commodities Could Be Active If Inflation Returns
2025-02-06 04:20:00 ET
Summary
- Higher levels of inflation and growth tend to drive up commodity prices.
- Crude oil prices rose in the spring, buoyed by strong demand and concerns about supply disruptions in the Middle East, while gold and silver gained from risk-adverse buyers.
- For 2025, Brent crude oil will be the highest weighted energy component of BCOM, at 8.03%, surpassing natural gas, which was the biggest part of 2024’s index.
- Inflation could increase if U.S. fiscal policy under the new administration stimulates demand and the Federal Reserve stays on a monetary-easing path.
By OpenMarkets
At a Glance
- Higher levels of inflation and growth tend to drive up commodity prices
- Open interest in the CME Group BCOM product suite was up more than 33% in 2024