We discuss our latest views on oil market dynamics in our monthly investment strategy report.
Commodities have seen a big bounce. The accepted narrative is that, as with other risk assets, this repricing is based on sentiment. But we think fundamentals also played a role. Late last year, global manufacturing faced recessionary conditions even though consumers were fine. Now, inventories have run off, with production converging back toward consumer take-away. Commodities are the nerve center; they bounced first. Yet China also contributed by pivoting back toward credit-fueled growth.
Read the full white paper at the link beneath Related Files