Commodities Update – October 10, 2022

Commodities had a strong week, with most gains concentrated within the energy sector. Overall, Bloomberg’s BCOM Index gained 5% on the week. Tin suffered the largest losses on continued recession fears. Brent crude, gas oil, heating oil, WTI crude, and gasoline all saw gains for the week as OPEC+ decided to cut production by a whopping 2 million barrels a day. The cut, which will be the deepest since the 2020 COVID pandemic, prompted analysts at Goldman Sachs to raise its oil price forecast for 2023 to $110 per barrel from $108 per barrel.

Last week’s spike pushed the proportion of commodities with a positive monthly return to 58.06%, the highest the metric has been since late August.

Risk-adjusted returns within the commodities market moved up throughout the week.


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