GLDI - Tighter Fundamentals And Geopolitics Are Pushing Commodities Higher
2024-04-12 05:50:00 ET
Summary
- Commodities, in general, have been performing strongly since early March.
- While high oil and gold prices have been extensively covered, they’ve been dwarfed by cocoa and silver. Here’s why.
- Copper is trading at its highest since the middle of 2022, up 10% so far this year, fuelled by supply risks and improving demand prospects for metals used in the green energy transition.
By Warren Patterson & Ewa Manthey
Oil market tightens as geopolitical risks grow
Oil prices have seen significant strength through March and early April. ICE Brent broke above US$90/bbl, trading at its highest level since October. Growing tension in the Middle East is obviously one reason for the boost. However, that increased geopolitical risk comes at a time when the oil market was already set to tighten....
Tighter Fundamentals And Geopolitics Are Pushing Commodities Higher