Global oil glut to intensify near-term

London, 14 January 2016

Commodities have started this year much as they did last year. Persistent excess supply in all main segments (Energy, Industrial Metals and Agriculture) resulting predominantly from weakness of EM demand, insufficient production discipline and a rising USD against commodity producers’ currencies, remains a headwind. Much like last year Precious Metals is the outperforming segment so far while cyclical segments and Energy in particular underperform. The latter segment mainly on the back of a sharp decline in oil (product) prices. US Natural Gas prices for their part since December managed to recover somewhat from record lows.

Source: Commodities Now feed

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