The making of a commodity bull marketbull market

Commodities have had a mixed start to 2017. The Bloomberg Commodities Index is down 2.5% year- to-date (to 31 March 2017), after a substantial drop in the oil price in March pared back gains made earlier in the rst quarter.

However, this pullback has not altered our view that a convergence of favourable factors will push commodity prices significantly higher this year. An OPEC-production cap, strikes at the world’s largest copper mines and stronger global growth are just some of the elements that will help to support price increases across the commodity market in 2017.