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Komfie Manalo, Opalesque Asia: Commodities gained in December due to improving supply/demand fundamentals for crude oil and higher economic growth expectations, Credit Suisse Asset Management said in a statement.
The Bloomberg Commodity Index Total Return performance was positive for the month, with 10 out of 22 Index constituents posting gains.
Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, commented, "The year ended strongly for commodities, with fundamentals improving for key commodities as cyclical over-supply resulting from the previous period of higher prices has further eroded. This was especially true for oil after OPEC and non-OPEC members agreed to reduce production, allowing prices to end 2016 in positive territory, something not seen since 2013. During 2017, markets will be focused on whether these countries will comply with the output quotas as well as on monitoring the potential supply response from U.S. shale players as prices increase. However, the price outlook has improved as the global oil supply/demand balance looks set to move into deficit in 2017 and as OPEC reasserts itself as a major player in the oil markets."
Credit Suisse Asset Management observed the following:
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