News Digest: Commodity prices set for a major rally in 2024
March 26, 2024
News Digest:
Prospects of reduced borrowing costs resulting in a weaker dollar could boost commodity prices over the next few months which could potentially result in returns topping 15%. Lower interest rates would assist the recovery of manufacturing and stimulate consumer demand, says an analysis by Goldman Sachs.
According to the report, crude oil, aluminum, copper and gold would be commodities that could harden substantially over 2024, driven by the changing global economic outlook. However, the geopolitical risks around Gaza and the Russia-Ukraine conflict could be a dampener.
Takeaway:
Analysts had revised oil price forecasts between $85 to $100 a barrel for Brent Crude citing a variety of reasons ranging from shipping disruptions in the Red Sea to a spurt in manufacturing activity at a global level amidst expectations of reduced borrowing costs. The International Energy Agency too had revised its forecast for oil demand growth upwards over fears of further production cuts by OPEC+ countries.