Economists note that the Bloomberg Commodity Spot index has already fallen by 20% since it hit an all-time high of 682.41 a month ago. The calculation of the indicator includes 23 futures contracts for energy carriers, metals and agricultural crops. While supply disruptions persist, prices for everything from gasoline to wheat are falling amid worries that a stagnating global economy will weigh on demand. And this fall can to some extent contribute to the fight against high inflation in many countries, experts say. However, fears are growing in the United States that the Fed will not be able to tame the highest inflation in 40 years without dropping the economy into recession. Additional pressure on commodities was exerted by a sharp rise in the US dollar, due to which it became much more expensive for representatives of other countries to buy raw materials. Hedge fund bets that commodities will rise in price have fallen to their lowest level in nearly two years. However, a recession is an expected problem, and some analysts believe markets have overreacted, bringing commodity prices back to pre-conflict levels in Ukraine. Moreover, oil supplies remain limited and vulnerable to disruptions.
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