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<ul><li>Sentiment is very important when it comes to trading any financial asset. In terms of commodities, Goldman Sachs seems to be still a bit too optimistic for me.</li><li>This year has started with a pullback in prices driven by warm weather shock and rising interest rates, Jeff Currie, the head of commodities at the investment bank, said at a presentation in London on Monday.</li><li>But demand in China starting to rebound and there’s insufficient investment in supply, meaning the year as a whole will be a “Goldilocks” moment for rising prices, he said. </li></ul>

Sentiment is very important when it comes to trading any financial asset. In terms of commodities, Goldman Sachs seems to be still a bit too optimistic for me.This year has started with a pullback in prices driven by warm weather shock and rising interest rates, Jeff Currie, the head of commodities at the investment bank, said at a presentation in London on Monday.But demand in China starting to rebound and there’s insufficient investment in supply, meaning the year as a whole will be a “Goldilocks” moment for rising prices, he said. 

<ul><li>Commodities will be the best-performing asset class once again in 2023, handing investors returns of more than 40%, according to Goldman Sachs.</li><li>The Wall Street bank said that while the first quarter may be “bumpy” due to economic weakness in the US and China, scarcities of raw materials from oil to natural gas and metals will boost prices after that.</li><li>The bank forecasts that Brent crude will climb to $105 a barrel in the final quarter of 2023, up from $82 today.</li></ul>

Commodities will be the best-performing asset class once again in 2023, handing investors returns of more than 40%, according to Goldman Sachs.The Wall Street bank said that while the first quarter may be “bumpy” due to economic weakness in the US and China, scarcities of raw materials from oil to natural gas and metals will boost prices after that.The bank forecasts that Brent crude will climb to $105 a barrel in the final quarter of 2023, up from $82 today.

<ul><li>The world economy will be as weak next year as it was in 2009 after the financial crisis as the conflict in Ukraine risks becoming a “forever war,” the Institute of International Finance said.</li><li>Global growth is expected to slow to 1.2% in 2023, according to the IIF.</li><li>The slowdown will be led by Europe, which is impacted most by the war, according to the IIF. </li></ul>

The world economy will be as weak next year as it was in 2009 after the financial crisis as the conflict in Ukraine risks becoming a “forever war,” the Institute of International Finance said.Global growth is expected to slow to 1.2% in 2023, according to the IIF.The slowdown will be led by Europe, which is impacted most by the war, according to the IIF. 

<ul><li>Manufacturing Sentiment in the US continues to decline. US manufacturing neared stagnation in October as orders contracted for the fourth time in five months, while an index of prices paid fell to a more than two-year low.</li><li>As most commodity groups are heavily correlated with the ISM data, this will provide significant headwinds over the next six months or so, according to our leading indicators.</li><li>By now, there is quite a divergence in industrial production in general. We expect industrial production to crash over the next few months, which will continue to be a nasty factor for commodity demand.</li></ul>

Manufacturing Sentiment in the US continues to decline. US manufacturing neared stagnation in October as orders contracted for the fourth time in five months, while an index of prices paid fell to a more than two-year low.As most commodity groups are heavily correlated with the ISM data, this will provide significant headwinds over the next six months or so, according to our leading indicators.By now, there is quite a divergence in industrial production in general. We expect industrial production to crash over the next few months, which will continue to be a nasty factor for commodity demand.

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Articles from Caixin Global

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News from Caixin

<ul>
<li>The gap between supply and demand for liquefied natural gas (LNG) will reach 100 million tons a year globally by the mid-2020s, reflecting increased demand and limited supply growth</li>
<li>Global trade in LNG expanded 6% in 2021 to 380 million tons as economies rebounded from the Covid-19 pandemic</li>
<li>Meanwhile, global investment in natural gas has been in a "structural decline" since 2010, with the number of new LNG projects falling significantly between 2020 and 2021</li>
</ul>


The gap between supply and demand for liquefied natural gas (LNG) will reach 100 million tons a year globally by the mid-2020s, reflecting increased demand and limited supply growth
Global trade in LNG expanded 6% in 2021 to 380 million tons as economies rebounded from the Covid-19 pandemic
Meanwhile, global investment in natural gas has been in a "structural decline" since 2010, with the number of new LNG projects falling significantly between 2020 and 2021


Global LNG Supply Will Fall 100 Million Tons Short by Mid-2020s

United States

Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, hydrogen sulfide, or helium. It is formed when layers of decomposing plant and animal matter are exposed to intense heat and pressure supplied by existing under the surface of the Earth over millions of years. The energy that the plants originally obtained from the sun is stored in the form of chemical bonds in the gas.

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Natural Gas (NATURAL GAS COMDTY)

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As most commodity groups are heavily correlated with the ISM data, this will provide significant headwinds over the next six months or so,...

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Global LNG Supply Will Fall 100 Million Tons Short by Mid-2020s

The gap between supply and demand for liquefied natural gas (LNG) will reach 100 million tons a year globally by the mid-2020s, reflecting...

Caixin Global

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