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…
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