Investors are currently quite bearish on oil and commodities
The risk of higher energy and higher commodities prices in H2 doesn't seem to be priced by the market. Meanwhile, Crude Oil futures are pushing up against new 3-month highs. Could this be the big surprise of the second part of 2023? Source: All Star Charts
Rice prices have surged to multi-year highs. And with global rice inventories projected to fall to 6-year lows in the next 6 months, prices could go even higher
Source: Barchart, FT
Oil prices are set to rise in the second half of the year, as supply struggles to meet demand, according to an International Energy Forum official.
Joseph McMonigle, secretary general of the International Energy Forum, attributes the push in oil prices to an increasing demand from China and India - two of the biggest oil consumers right after the U.S. Source: CNBC
According to the latest BofA survey, fund managers are now UNDERWEIGHT commodities
The last time fund managers were this bearish on #commodities, #crudeoil futures were literally trading below zero. Source: BofA
Saudi Arabia announced that it would extend its voluntary, unilateral oil production cut by one month, until at least August.
Moments later, OPEC+ ally Russia announced it would "voluntarily" extend its August oil export cut by 500,000 barrels a day to ensure oil market balance, Deputy Prime Minister Alexander Novak said in a statement. The 1 million-barrel-per-day Saudi production cut that began this month - in addition to existing OPEC+-agreed restrictions - will continue into August and could be extended, according to a statement issued by the state-run Saudi Press Agency. The cuts will take the kingdom's production to around 9 million barrels a day, its lowest level for several years. Source: zerohedge
Is the next Commodity Super-Cycle right around the corner?
In recent years, commodity prices have reached a 50-year low relative to overall equity markets (S&P 500). Historically, lows in the ratio of commodities to equities have corresponded with the beginning of new commodity supercycles. As Visual Capitalist's Bruno Venditti shows in the infographic, using data from Incrementum AG and Crescat Capital LLC, the relationship between commodities and U.S. equities has varied greatly over the last five decades.
Europe is filling its gas storage weeks early
The world is becoming awash with natural gas, pushing prices lower and creating an overabundance of the fuel in both Europe and Asia — at least for the next few weeks - Bloomberg
Gold holdings as % of Nations private net wealth
Source: QuantInvestor.substack.com
