Following a January rally, the
global commodities complex underwent declines in February before partially recovering in March; for the first quarter as a whole, the benchmark Thomson Reuters CoreCommodity CRB Index (CRB) gained 0.8 % on a
price - only basis.1
Among the 19 component commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth in global economies and weakness in the trade - weighted US dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside from robust gains for a host of agricultural products, oil and gold were also among the commodity win
Among the 19 component commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth in
global economies and weakness in the trade - weighted US dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside from robust gains for a host of agricultural products,
oil and gold were also
among the commodity win
among the commodity winners.
The report said a
price recovery is expected to cause the most pain
among companies drilling in the United States, who rely mostly on hydraulic fracturing, which isn't profitable unless the average
global price of
oil is around $ 60 per barrel.
In tandem, the era of high
oil prices prompted an increase in saving
among oil producers... Using the increase in emerging markets» current account surplus as a guide suggests the desired saving schedule has shifted to the right by 1pp as a result of the EM saving glut, which lowers the
global real rate by round 25bps.