Global Commodities: Energy rising
At Any Rate - A podcast by J.P. Morgan Global Research
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On July 20, JP Morgan Commodities team recommended to raise allocation to commodities. Since then, commodities rallied but the move was driven by energy, while base metals moved sideways. BCOM Energy subindex surged 24% since mid-June and balances are pointing towards more upside in the near term. We see potential for US Henry Hub gas price to reach $3.30/MMBtu if a severe Australian LNG outage were to manifest alongside continued warmer weather forecast skew. We see Brent oil price hitting $90, or even above by September. But as the market transitions from a 3Q23 inventory draw into a slight surplus in 4Q23 and 2024, prices should ease back towards mid $80s. Speakers: Natasha Kaneva, Head of Global Commodities Research Shikha Chaturvedi, Head of Global Gas Research This podcast was recorded on Aug. 11, 2023. This communication is provided for information purposes only. Institutional clients can view the related reports at https://www.jpmm.com/research/content/GPS-4483453-0, and https://www.jpmm.com/research/content/GPS-4484961-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2023 JPMorgan Chase & Co. All rights reserved.
