Tag Archives: Petroleum
Stretched Supply Chains Spur Commodities Prices Higher
The S&P GSCI, the broad commodities benchmark, rallied 5.8% in October. Performance was solid across sectors, with energy-related commodities continuing to outperform and grains and metals regaining some of their recent weakness. With two months of the year remaining, the S&P GSCI is up 46.3% YTD, the index’s best performance over the first 10 months…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
Industrial Commodities Push the S&P GSCI Lower in August
The S&P GSCI declined 2.3% in August, as industrial commodities retreated in line with a surge in COVID-19 cases attributed to the Delta variant, as well as signs that China intended to dampen industrial production to curb carbon emissions. In contrast, performance across the soft commodities was impressive, with a variety of production-related disruptions elevating…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
S&P GSCI Enjoys Strong First Half Performance
The S&P GSCI rose 31.4% in the first half of 2021, outperforming the S&P 500®, which rose 15.2%. The S&P GSCI has more than doubled since hitting an all-time low during the initial stages of the COVID-19 pandemic in April 2020. Several commodities have reached new all-time highs this year, as the global economy has…
- Categories Commodities
- Other Tags
Commodities Start the Year on the Front Foot
The headline S&P GSCI rose 4.9% in January, as the industrial portion of the global economy continued to bounce back from the first wave of the COVID-19 pandemic and lockdowns in 2020, and the prices of many agricultural commodities spiked higher on the back of record demand from Asia and the growing risk of grain…
- Categories Commodities
- Other Tags
Industrial Commodities Benefit from Hopeful COVID-19 Vaccine News
November proved to be a good month for risk assets, including commodities. The headline S&P GSCI rose 12.0%, outperforming the S&P 500®, which gained 10.8%. Promising developments on the COVID-19 vaccine front and the U.S. election outcome rewarded risk assets such as energy and industrial metals, while safe-haven assets like gold lost some luster. The…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
Energy Drags Commodities Lower in October
The headline S&P GSCI fell 3.6% in October. Energy was responsible for the bulk of the declines in October, while agriculture continued to benefit from the return of demand from China, as well as weather-related supply issues. Across the energy complex, the rising number of COVID-19 infections, a second wave of lockdowns, and travel restrictions…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags
A Second Wave Sinks Commodities in September
The headline S&P GSCI fell 3.6% in September on the back of growing concern regarding the prolonged economic impact of a second wave of the COVID-19 pandemic. Across sectors, both industrial metals and energy contracted, while the agriculture and livestock sectors benefited from cursory signs of the return of demand from China. The S&P GSCI…
- Categories Commodities
- Other Tags
Commodities Marched Downward during Month of Volatility
It is difficult to accurately express the magnitude of the health, societal, and economic costs of the COVID-19 pandemic. Through the lens of the commodities markets, the economic impact has been swift and severe. The broad-based S&P GSCI ended March down an extraordinary 29.4%, the largest monthly drop in performance in the index’s nearly 29-year…
- Categories Commodities
- Other Tags
U.S.-Iran Conflict – Financial Markets Appear to Look Past Another Geopolitical Risk
The financial market’s reaction to the escalation of tensions between the U.S. and Iran have so far been muted, even benign (see Exhibit 1). A little over a week from the U.S. killing of top Iranian commander Qassem Soleimani and Iran’s response (missile attacks on U.S. army bases in Iraq), and a casual observer of…
- Categories Commodities
- Other Tags
Commodities September – Short-Term Supply Shocks
Despite the largest one-day spike in oil prices since at least 1989, the broad commodities market only managed to climb modestly in September. The S&P GSCI was up 1.7% for the month and 8.6% YTD. The Dow Jones Commodity Index (DJCI) was up 1.4% in August and up 4.7% YTD. Rallies in the agriculture and…
- Categories Commodities
- Other Tags
- Categories
- Commodities
- Other Tags