Energy is underperforming despite recent $10/barrel move – BBH

FXStreet (Delhi) – Research Team at BBH, note that the recent move in commodity prices has garnered a lot of attention after oil prices increased about $10 per barrel since their lows in August.

Key Quotes

“There has been talk of changes in the supply outlook and increased geopolitical risk as Russia stepped in to the Syrian conflict more forcefully. Taking a step back, however, we note that the move is still relatively small and that energy is underperforming compared with other commodities.”

“Looking over the last six months we see that precious metals and agricultural commodities have held up better than energy and industrial metals. Separately, it’s worth noting that the recent increase in commodity prices has moved closely in line with the recovery in EM, even though the impact of higher commodity prices in EM is far from uniform between countries.”