Skip to content
Real Cryptocurrency Hub

Real Cryptocurrency Hub

Crypto Comeback Pro is an auto trading platform that allows you to invest in the crypto market and start making money right away. Sign Up HERE

  • Home
  • Start Trading
  • English
    • English
    • Español
    • Italiano
    • Polski
    • Svenska
    • Deutsch
    • العربية
  • News
    • Mining
    • Bitcoin (BTC)
    • ATM
  • Guides
  • How To’s
  • Exchange/Wallet
  • Brokers
  • Bitcoin Price Prediction
  • ✉ Contact
  • Home
  • Trading
  • Oil Trading At Highest While Commodities Boom Might Shift Out Of China
  • Trading

Oil Trading At Highest While Commodities Boom Might Shift Out Of China

Blaine Matta July 4, 2021 2 min read

In the first half of 2021 commodities varying from copper to oil to corn witnessed an increase in prices with oil trading at its highest. This was a result of a combination of factors ranging from pent-up demand to supply bottlenecks owing to the pandemic.

According to a chief economist of Trafigura, Saad Rahim as the dynamics of the rally alter, nevertheless, broad-based gains seem to continue. Trafigura is considered amongst the largest commodity-trading firms in the world. It is a Swiss multinational company that trades majorly in oil and metals.

The sustained increase in prices of the commodities in the initial half of 2021 was substantially propelled by China. Economist Rahim points out that the rally was goods-intensive and metals-intensive. However, he added that now it was gradually shifting to the US and EU which meant it would be service-intensive and oil-intensive.

Due to demand from China, supply blockages, and years of insufficient investment in the output the first half of 2021 prices of metals surged. The top performer was steel futures and copper, iron ore and other metals followed.

It was nonetheless, a wide-ranging rally. According to the Investable Commodity Index tracing twenty-four exchange-traded commodities were up by 31.1%. As per Dow Jones Market Data, this was its best since the 41.1% gain in 2008.

While major stock indexes continue to trade near unsurpassed highs, commodities indexes are significantly outperforming their equity counterparts.

The pandemic has kept the economies mostly shut all through 2020 and the first half of 2021. It is only now after the vaccine roll-out that economies are gradually gaining ground. The vaccine programs have been significant in helping steady the ship especially in developed countries. As the pandemic lockdowns and restrictions pushed the global economy into a recession the multi-year slump reached its worst point. The multi-year slump was followed by a commodity rally in the first six months of this year.

Nevertheless, some commodities were less successful, for instance, lumber. Lumber futures witnessed as much as a 60% drop because rigid supplies slowed down activities such as house-building. Copper on the other hand is 12% off its 2021 high, however, it is still up approximately 57% over the previous twelve months.

Where the copper rally has slowed oil has plunged in and making its way to the top. Rahim pointed this out while illustrating the dynamics of the shift in demands. Since the last quarter of 2018 Oil has been trading at its highest. From the start of 2021 the global benchmark Brent crude and WTI crude is up more than 40% and 50%, respectively. Over the last twelve months, both grades of crude have rallied above 80%. In April of last year WTI contract just as it expired witnessed trading and closing at a negative price.

Where demand for certain commodities experienced a decline, Rahim points out that it was rather due to supply issues than pricing.

Post Views: 533

Continue Reading

Previous: The situation of Cryptocurrencies in Major Countries
Next: Understand This Before Buying Leveraged Crypto Assets

Related Stories

Following a Strong Trend, Lido DAO is All Set to Record a Downward Movement
2 min read
  • Crypto News
  • Price Analysis
  • Trading

Following a Strong Trend, Lido DAO is All Set to Record a Downward Movement

August 2, 2022
El Salvador President Reassures Bitcoin Investors
2 min read
  • Bitcoin (BTC)
  • Blog
  • Crypto News
  • Regulation
  • Trading

El Salvador President Reassures Bitcoin Investors

June 20, 2022
Mainland Chinese Stocks Bounce even As Asian Markets Slide
2 min read
  • Price Analysis
  • Trading

Mainland Chinese Stocks Bounce even As Asian Markets Slide

June 14, 2022

Read our disclaimer

Name Price24H (%)
bitcoin
Bitcoin (BTC)
$24,466.00
6.94%
ethereum
Ethereum (ETH)
$1,912.15
13.95%
tether
Tether (USDT)
$1.00
0.11%
binancecoin
BNB (BNB)
$334.81
3.87%
usd-coin
USD Coin (USDC)
$1.01
0.45%
ripple
XRP (XRP)
$0.386389
5.75%
cardano
Cardano (ADA)
$0.55
6.87%
polkadot
Polkadot (DOT)
$9.64
11.15%
dogecoin
Dogecoin (DOGE)
$0.072509
6.13%
Uniswap
Uniswap (UNI)
$9.36
11.78%

Recent Posts

  • Alfabtc Review – A Recommended Cryptocurrency Broker

    Alfabtc Review – A Recommended Cryptocurrency Broker

     Alfabtc Review Alfabtc is a competent brokerage firm known for its fast and efficient execution of trade. The
  • Withdrawals Have Been Frozen By Hodlnaut Citing Market Conditions

    Withdrawals Have Been Frozen By Hodlnaut Citing Market Conditions

    Hodlnaut has announced that it has frozen its services for the users. The firm made an official announcement
  • Following a Strong Trend, Lido DAO is All Set to Record a Downward Movement

    Following a Strong Trend, Lido DAO is All Set to Record a Downward Movement

    Lido DAO (LDO) has proven to be one of the top performers in the cryptocurrency industry in the
  • CTproz Review – A Recommended Crypto Broker

    CTproz Review – A Recommended Crypto Broker

    CTproz Review The number of people engaging in online trading continues to rise, and if you don’t want
  • Coinbase Obtains Operational License In Italy

    Coinbase Obtains Operational License In Italy

    One of the top crypto exchanges in the market, Coinbase recently achieved yet another milestone, as it was

Start Trading

Categories

Top Posts

  • Crypto NFT Exploits Continue As OpenSea Emerges As Latest Hack Victim

    Crypto NFT Exploits Continue As OpenSea Emerges As Latest Hack Victim

     NFT marketplace OpeSea has frozen all transactions of the Bored Ape NFT collectibles after a theft reported by
  • What is Bitcoin Mixer and Why to Use It?

    What is Bitcoin Mixer and Why to Use It?

    Are you struggling to understand the term ‘’Bitcoin Mixing or Bitcoin Mixer’’? No worries, you are at the
  • MicroStrategy Claims that Bitcoin is Going to Become Bigger than Companies like Apple, Amazon and Facebook

    MicroStrategy Claims that Bitcoin is Going to Become Bigger than Companies like Apple, Amazon and Facebook

    MicroStrategy is a business intelligence company that also has one of the largest Bitcoin holdings in the world.
  • The CBN Directive in Nigeria caused trades to go from Centralized Exchanges to black Market Exchanges

    The CBN Directive in Nigeria caused trades to go from Centralized Exchanges to black Market Exchanges

    It’s been almost half a year since the Nigeria’s central bank ordered banks to no longer serve customers
  • Elon Musk Accused of Manipulating Bitcoin Market by Anonymous – A Hacking Organization

    Elon Musk Accused of Manipulating Bitcoin Market by Anonymous – A Hacking Organization

    A group of hackers calling themselves “Anonymous” is currently targeting the Technoking of Tesla and the most influential

Archives

You may have missed

Alfabtc Review – A Recommended Cryptocurrency Broker
3 min read
  • Brokers
  • Reviews

Alfabtc Review – A Recommended Cryptocurrency Broker

August 10, 2022
Withdrawals Have Been Frozen By Hodlnaut Citing Market Conditions
2 min read
  • Crypto News

Withdrawals Have Been Frozen By Hodlnaut Citing Market Conditions

August 3, 2022
Following a Strong Trend, Lido DAO is All Set to Record a Downward Movement
2 min read
  • Crypto News
  • Price Analysis
  • Trading

Following a Strong Trend, Lido DAO is All Set to Record a Downward Movement

August 2, 2022
CTproz Review – A Recommended Crypto Broker
3 min read
  • Brokers
  • Reviews

CTproz Review – A Recommended Crypto Broker

August 1, 2022
  • Kraken
  • OrbitGTM
  • Fxoro
  • KuCoin
  • Huobi
  • Bitfinex
  • PrimeXBT
  • CTmatador
  • DXCBIT
  • PrimeHolders
  • CMC Markets
  • XCGIN
  • Virtual Payout
  • Gamma Capitals
  • Towards Soure
  • CoinsMarkets
  • ArgoTrade
  • Global Solution
  • CTProz
Copyright © All rights reserved. | DarkNews by AF themes.
  • bitcoinBitcoin(BTC)$24,466.006.94%
  • ethereumEthereum(ETH)$1,912.1513.95%
  • tetherTether(USDT)$1.000.11%
  • binancecoinBNB(BNB)$334.813.87%
  • usd-coinUSD Coin(USDC)$1.010.45%
  • rippleXRP(XRP)$0.3863895.75%
  • cardanoCardano(ADA)$0.556.87%
  • SolanaSolana(SOL)$43.178.30%
  • polkadotPolkadot(DOT)$9.6411.15%
  • dogecoinDogecoin(DOGE)$0.0725096.13%
  • UniswapUniswap(UNI)$9.3611.78%
  • bitcoin-cashBitcoin Cash(BCH)$144.668.13%