Latest News

Goldman Commodity Veteran Says He’s Never Seen a Market Like It

0

(Bloomberg) — Jeff Currie, the closely-followed head of commodities research at Goldman Sachs Group Inc., says he’s never seen commodity markets pricing in the shortages they are right now.

Most Read from Bloomberg

Ottawa Declares Emergency After Protests Spin ‘Out of Control’

Redistricting Is Taking the Swing Out of U.S. Swing States

Amazon Prime Fee Rising to $180, Not $139, for Many Members

Adults Back in Charge of Stock Market as Fed Awakens Big Money

Joe Manchin Predicts Passage for U.S. Electoral Reform Act

“I’ve been doing this 30 years and I’ve never seen markets like this,” Currie said in a Bloomberg TV interview. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”

Futures curves in several markets are trading in super-backwardation — a structure that indicates traders are paying bumper premiums for immediate supply. The downward sloping shape in prices is generally taken to mean commodities are severely undersupplied.

The Bloomberg Commodity Spot Index, which tracks 23 energy, metals and crop futures, has touched a record this year. That has been driven in part by surging oil prices, which have hit their highest level since 2014.

Top Commodities ETF Reaps Record $1.1 Billion as Markets Soar

Diesel futures are in their strongest backwardation since 2008, excluding expiry days, according to data compiled by Bloomberg, while the structure of the crude market has also been booming in recent days. All six of the main industrial metals traded on the London Metal Exchange moved into backwardation late last year, in a rare synchronized bout of tightness last seen in 2007.

Most Read from Bloomberg Businessweek

The Rise of the $2.5 Billion Ugly-Shoe Empire

Nurses Who Faced Lawsuits for Quitting Are Fighting Back

New Airline Bets You’ll Stop in Alaska for a Cheaper Flight to Asia

Merck’s Covid Pill Fumble Gives Pfizer Potential $17 Billion Win

First Black Woman Picked for Fed Draws GOP Fire Over Research

©2022 Bloomberg L.P.

: Junk bond flows dropped by most since early days of pandemic

Previous article

Alibaba Stock Is Falling. SoftBank May Be Getting Ready to Sell Its Massive Stake.

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News