Commodities set for rebound in 2017

Institutional investors including sovereign wealth funds and family offices are taking big exposures in commodities

London: The commodities markets are rebalancing and the worst is over for the oil market, as a slowdown in production is setting prices up for a steeper rebound than predicted at the beginning of the year, Citigroup analysts said.

“Saudi and Russia are expected to spearhead the rebalancing efforts in the oil markets. With strong recovery in oil prices experienced in the past few moths we expect further recovery in 2017,” said Ed Morse, Global Head of Commodities at Citi.

Citi analysts see fundamentals in the oil sector are tightening much faster than it forecast earlier this year. The shift is being driven particularly by a slide in production from countries outside the Organization of the Petroleum Exporting Countries (Opec) while further efforts from some of the key Opec members will...Read more...

Source: gulfnews.com