Commodity markets in spotlight as geopolitical conflict rolls on
By Citi Wealth Insights |
Oil prices should soften by year-end. Even as Russian oil output falls, with EU banning waterborne imports of Russian oil by year-end, a global GDP slowdown, high prices, and China’s zero-COVID policy are all hitting demand
Commodity markets in spotlight as geopolitical conflict rolls on
By Citi Wealth Insights |
The geopolitical situation remains fluid and an escalation in the Russia-Ukraine conflict may buttress risk-on investor flows. Even as Russian production slides, a global GDP slowdown is hitting oil demand, relief for sanctions on Iran could be on the way, and non-OPEC+ supply is growing fast while Strategic Petroleum Reserve releases could now total 300-m bbls this year.
Given today’s unique conditions, the GIC has further enhanced its asset allocation with the addition of tactical exposures to natural resources, oil services firms and gold that aims to add diversification and serve as a possible hedge against tail risks.
Commodities: Geopolitical Uncertainty Support Short-term Upswing
By Citi Wealth Insights |
Western producers will have to step up and fill Russia’s energy export gap as well as agricultural export losses from Ukraine. The future prices of oil and other commodities has shifted higher and might stay in higher range for longer.
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