Signs of Recovery for Global Commodity Markets
Although global commodity markets have been under stress for some time, investors are beginning to look at recent developments more opportunistically. According to the World Bank, prices for most commodities strengthened in the first quarter of 2017. Crude oil is expected to rise to an average of $55 per barrel (bbl) in 2017 from $43/bbl in 2016. Metal prices are projected to increase by 16% as a result of stronger demand in China and agricultural commodity prices are beginning to show early signs of recovery and growth. So why the positive forecasts when diversified commodity indices are down 5% so far this year?…