Are We On The Verge Of The Biggest Commodity Supply Squeeze Ever In History?

The Global Energy Crisis 2.0: A Game-Changing Macro-Trading Opportunity in 2023

As we move through the final quarter of 2023 – the Global Energy Crisis 2.0 is snatching headlines and firmly positioning itself as one of the biggest macro-trading opportunities of the current financial climate that we find ourselves in right now!

Nowhere in the world has been immune from the unprecedented surge in Energy prices this year, which has hit every major economy and significantly increased the odds of a prolonged period of high prices that will ultimately keep inflation elevated for longer than previously expected.

Natural Gas Prices Surge in Europe and the US

You cannot talk about Energies without mentioning European Natural Gas prices, which have been racking up double digit gains on consecutive weekly basis since mid-August.

On Friday, European Natural Gas prices surged over 11% in a single day – after workers at two of Chevron’s biggest LNG plants – resumed strike action – threatening to disrupt global supplies.

The bullish momentum also split over into U.S Natural Gas prices, which closed at a fresh 2023 record highs on Friday – up over 14% for the week. That’s U.S Natural Gases biggest weekly percentage gain, so far this year and we haven’t even entered the winter months yet.

Energy Prices Soar Amidst Middle East Conflict

As we head into new week, energy prices are once again dominating the headlines following Hamas’s unprecedented, multi-front attack on Israel.

Oil prices surged over 5% on Monday as the worst attack on Israel since the Yom Kippur War in 1973 – sent shockwaves across the wider Middle East region, which is home to almost a third of global Crude Oil supply.

But, surprise, surprise, the real star performer was once again European Natural Gas. The European benchmark surged over 13% on Monday – after Israel’s Energy Ministry ordered Chevron to shut down production at the Tamar Natural Gas field off the country’s northern coast.

Elsewhere, the precious metals including Gold, Silver, Platinum and Palladium, which are everyone’s favourite trade in times of crisis skyrocketed to fresh multi-month highs regaining their ‘Safe Haven’ status.

Geo-Political Tensions Threaten to Push Oil Prices Over $100, Impacting Global Commodities Market

And the rally might not stop there!

Iran, which is a major Oil producer and holds the world’s second-largest Natural Gas reserves is a key backer of the Hamas group that launched the large-scale attack against Israel.

According to economists – multiple factors including retaliatory strikes against Iran, new international sanctions or even OPEC halting its oil exports in support of Palestine – could very easily take millions of barrels off the market at a very critical time when global Crude Oil supplies have already been depleted by months of sharp production cuts by Saudi Arabia and Russia.

Whichever way you look at it, one thing is clear. It won’t take much for Oil prices to move significantly higher in this environment and surpass the key $100 a barrel mark and pull many other Commodities including the Metals and Natural Gas higher with it.

The higher Energy prices go, the more expensive it becomes for companies to mine, produce, and transport essential Commodities – opening the door to a major squeeze in prices. That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.

Commodity Price Forecast

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