As we like to keep in tune with the latest news and deliver the facts, we report regularly on the commodity markets giving a deep summary of the current situation and predictions for 2023 and beyond. What has an effect on these markets and what do we monitor and report back on?
Although commodity prices will not fuel global inflation in 2023 as they did in 2021-22, upside risks to our baseline price forecasts are increasing and largely centred on China, climate change and continued conflict in Ukraine. Global supply-chain disruptions stemming from the covid-19 pandemic will seemingly subside in 2023.
Commodity prices are affected by a variety of factors, including supply and demand, geopolitical events, and economic conditions. In recent years, the COVID-19 pandemic has had a significant impact on commodity prices, causing disruptions in global supply chains and reducing demand for certain commodities.
In terms of specific commodities, oil prices are often closely watched as they have a major impact on the global economy. While it is difficult to predict oil prices, some analysts believe that prices may remain relatively stable in 2023 due to a combination of increased demand and increased supply from major oil-producing countries.
Another important commodity for the UK is natural gas. Prices for natural gas have been volatile in recent years, but some experts predict that prices may rise in 2023 due to increased demand for gas in Europe and Asia.
Other commodities to watch in 2023 include metals such as copper and aluminium, which are used in a variety of industries including construction and manufacturing. Prices for these metals have been relatively high in recent years and may continue to rise or remain stable in 2023.
Overall, commodity prices are influenced by a variety of complex and often unpredictable factors, and it is difficult to make precise predictions. However, by keeping an eye on global economic and political trends, it may be possible to identify potential opportunities and risks related to commodity investments.