The investment bank recommends holding long commodity positions as a hedge against geopolitical risk, citing structural supply constraints and strong demand fundamentals for key materials like copper and gold.
Crude oil futures fell on Monday as reports of diplomatic talks involving Iran eased fears of a wider regional conflict, though prices remain supported by ongoing geopolitical risks following Houthi attacks on Saudi Arabia.
Saudi Arabia will begin storing crude oil in Singapore's underground Jurong Rock Caverns in the second half of 2027, a strategic move aimed at enhancing energy security and supply chain resilience for key Asian markets.
Gold recovered on Monday from a steep weekly loss as a retreat in oil prices tempered inflation concerns. Investors are now focused on the Federal Reserve's upcoming interest rate decision and forward guidance.
European natural gas benchmarks surged to their highest levels in nearly four years, driven by escalating military conflicts disrupting LNG supply and historically low storage levels ahead of winter.
Russian wheat export prices fell last week as markets reacted to the prospect of renewed peace negotiations concerning the Black Sea region, though analysts caution the optimism may be premature.
U.S. emergency crude oil stockpiles dropped to 282.6 million barrels, a 44-year low, following planned releases and an emergency exchange to a Phillips 66 refinery in Louisiana.
The main sea freight index for dry bulk commodities declined on Monday, pressured by falling rates for larger Capesize and Panamax vessels. The drop reflects uncertainty in the iron ore market as traders weigh seasonal demand weakness in China against potential government stimulus.
Futures on the Euronext exchange fell sharply after a Russian official stated Moscow is reviewing proposals to secure grain shipments, easing fears of prolonged supply disruptions.
