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Annual & Mid-year Outlook | Commodities

Pockets of Opportunities

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Key takeaways

  • Oil supply disruption is likely to support Brent prices even if trade tensions were to escalate. Citi analysts foresee Brent prices hitting a short-term target of US$75/bbl once again, possibly overshooting towards US$78/bbl.
  • Citi analysts continue to favour gold as a way to reduce overall portfolio volatility or hedge geopolitical and market tail risks, with potential for prices to average US$1,335/oz in 2019.
  • Escalated US-China trade tensions have led Citi analysts to prefer bulk commodities over base metals, given that the increased odds of Chinese stimulus measures is expected to benefit demand for steel, iron ore and coking coal.

 

 

 

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Market Specific Disclosures

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