Are We On The Verge of A Supply Squeeze That Could Drive Commodity Prices Up By Triple-Digits?

That comes as no surprise, considering 1 in 2 people have now turned to trading to capitalize on one of the greatest wealth transfer opportunities of our lifetime!

Traders are rushing back into Commodities at one of the fastest paces seen in over a year to capitalize on the biggest macro themes driving the markets from Re-Accelerating Inflation, The Global Energy Shock 2.0 to an escalating Global Food Crisis, which is sending Agriculture prices skyrocketing to all-time record highs.

Global Energy Shock 2.0: Crude Oil’s Explosive Rally and the Quest for $100+

One of the dominant themes of the current economic climate that needs no introduction is the return of the Global Energy Shock 2.0, which has flared up again after Crude Oil prices surged to the highest levels seen this year.

There is no denying, Crude Oil’s blistering rally is whipping up an explosive money-making storm – that is capturing headlines and positioned the energy sector as one of the most sought after asset classes in the world right now!

Last week, WTI Crude Oil surged above $87 a barrel, while Brent Crude Oil touched $91 a barrel to hit fresh 2023 record highs.

Since June, both benchmarks have tallied up a stunning gain of over 25% from their 2023 lows of $63 a barrel – with a long list of Wall Street banks now calling for prices to top $100 by year-end.

And the rally might not stop there!

Saudi Arabia has not ruled out the possibility of further production cuts this year, if necessary. A move which could send Oil prices climbing well into triple-digit territory by 2024, according to Goldman Sachs.

Speaking at the G20 Summit, Saudi Arabia’s Crown Prince Mohammed bin Salman declared “the Middle East will be the new Europe in the next five years”.

In a note to clients, JPMorgan said that “if Saudi Arabia wants to achieve this extravagant vision in the aggressive timeline set out, then they will need to target Oil prices at around $240 a barrel and keep them there for years”.

European Natural Gas Prices Surge: Unprecedented Rally Amidst LNG Plant Strikes

Elsewhere in the Energy markets, European Natural Gas prices have been on an absolute tear – racking up double digit gains on consecutive weekly basis – after workers at two of Chevron’s biggest LNG plants, responsible for around a 10th of the world’s supply – went on strike.

European Natural Gas prices are currently 6 times higher than where they usually are for this time of the year – trading at the equivalent of more than $600 a barrel of Oil – and we haven’t even entered the winter months yet.

Commodity Price Forecast

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: