Although commodities have had a rough year, crude oil has proven particularly resilient and less volatile. According to Russ Koesterich, Chief Investment Strategist for Blackrock and iShares, three factors underlie this trend. Firstly, higher interest rates have a more pronounced impact on precious metals. Secondly, industrial metals have been hit hard slowing Chinese growth whereas demand for oil tends to be tied to the global economy. Thirdly, a drop in supply from heightened unrest in supply countries have placed upward pressure on oil prices. Going forward, oil remains what traders call range bound, not moving particularly higher or lower. (VIEW LINK)
Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.
No areas of expertise