“We’re out of everything…”… Bloomberg

February 9, 2022 by Jim Colburn Leave a Comment

Mark Burton and Alex Longley, Bloomberg, quote a commodity analyst on shortages across the board, here..

”Commodities trade in backwardation, where near-term prices are stronger than those further out, when they are in short supply. On Monday, Goldman analyst Jeff Currie said the world was in the midst of “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,” Currie said in a Bloomberg TV interview on Monday. Futures curves are pricing in shortages, the like of which he’s not seen in 30 years, he added. “

And here is another unusual event, a sharp V-shape recovery in GDP in which economic activity ends up at all time highs… Commodity producers were in survival mode just a short time ago and now are struggling to keep up with demand…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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