Five Important Charts To Monitor Global Commodity Markets

(Bloomberg) — While the metals industry watches the effects of the London Metal Exchange’s restriction on new Russian shipments, The implications of Iran’s attack on Israel over the weekend for the global market will be priced in by oil traders.. Meanwhile, project developers, government representatives, and bankers will gather in New York for the annual BNEF Summit, which aims to explore global trends in the energy transition.

Aluminum

Following US and UK sanctions, the LME banned the supply of new Russian metal, but this opened the door for a flood of old stocks to enter the market and increase the possibility of price disruptions. Starting on April 13, no metal produced in Russia will be permitted to be supplied to the London Metal Exchange (LME). The LME is a prominent participant in the global metals market and sets benchmark prices for a variety of metals, including copper and zinc. At the open, aluminum, which has increased significantly since the end of February, increased by more than 6%.

Clean Tech

According to BloombergNEF, there is an increasing dependence on China for the technologies required to facilitate the world’s shift away from fossil fuels. China already possesses more than 80% of the world’s production capacity across 11 clean technology value chain areas thanks to rapid spending. For many years to come, China’s production is expected to significantly exceed the demand for solar, batteries, and electric vehicles worldwide. BNEF’s summit on Tuesday and Wednesday will cover a variety of issues, including supply chains for renewable energy.

Oil

The attack by Iran on Israel over the weekend was not felt by Brent crude, but it does signal the beginning of a risky new stage in the Middle East conflict. The increase will compel the market to reconsider the geopolitical risk premium it must apply in a market where prices have already risen above $90 a barrel due to tight supply-demand fundamentals. Almost one-third of the world’s crude oil is produced in this region.

Eggs

The most important US egg producer announced this month that the US was seeing its worst outbreak since December and that the highly destructive bird flu virus had spread to dairy cattle. Although egg costs have been reasonably stable thus far, there is a possibility that they will increase further due to the possibility of more egg-laying chickens contracting the virus during the busiest time of year for wild bird migration. The worst-ever epidemic has never fully halted since it was found in the US in February 2022.

Energy

Energy stocks have risen sharply this year, driven by oil, and are now outperforming technology indexes. The Nasdaq 100 Index has gained just 7% since the beginning of the year, while the actively followed Energy Select Sector exchange-traded fund, or XLE, has increased by about 15%. Since mid-March, when West Texas Intermediate crude broke above $80 per barrel, rising oil prices have been beneficial. Since the beginning of March, the S&P 500’s 11 market sectors have been led by the energy sector, which has increased by more than 11%. The next closest group, communication services, is at 5.8%, while the overall index has decreased by 0.3%.