Tag Archives: Petroleum

Dec 1, 2020

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…

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Nov 2, 2020

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…

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Oct 1, 2020

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…

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Apr 1, 2020

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…

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Jan 13, 2020

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…

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Oct 1, 2019

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…

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Sep 3, 2019

August 2019 Commodities Performance Highlights – Tweets, Trade, and Tumult

Commodities markets struggled under the weight of an acceleration in trade tensions between the U.S. and China and growing evidence of a slowdown in global economic activity in August. The S&P GSCI was down 5.6% for the month but remained up 6.7% YTD. The Dow Jones Commodity Index (DJCI) was down 2.7% in August and…

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Aug 1, 2019

July 2019 Commodities Performance Highlights – A Nickel for Your Thoughts

Commodities markets hit the summer doldrums in July. The S&P GSCI was down 0.2% for the month and 13.1% YTD. The Dow Jones Commodity Index (DJCI) was down 0.8% in July and up 6.1% YTD, reflecting its lower energy weighting. Impressive rallies in nickel and silver markets were pitched against a slump in agriculture prices,…

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Jul 2, 2019

Commodities Performance Highlights – June 2019

Commodities markets resumed their upward trajectory in June. The S&P GSCI was up 4.4% for the month and up 13.3% YTD. The Dow Jones Commodity Index (DJCI) was up 3.1% in June and up 6.9% YTD, reflecting its lower energy weighting. A recovery in petroleum prices and an impressive rally in gold were the main…

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Jun 3, 2019

Commodities Performance Highlights – May 2019

There was a notable reversal of fortunes across the commodities complex in May. The S&P GSCI was down 8.2% for the month but remained up 8.5% YTD. The Dow Jones Commodity Index (DJCI) was down 3.6% in May and up 3.7% YTD, reflecting its lower energy weighting. A sharp correction in petroleum prices combined with…

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