Brent crude made an upward surge on February 24, hitting a new post-financial crisis high of US$119.79/bbl, as Colonel Muammar al-Qadhafi lost control of vast swathes of oil-producing Libya to pro-democracy protesters. However, my colleagues and I are not convinced that oil will continue to sky-rocket and hit new all-time highs. Instead we see consolidation… [Read more]

Regular readers will know that I have held a cautiously bearish view with regard to London cocoa since early-March. Indeed, at the time, I highlighted that a combination of factors could see cocoa prices move to multi-year trendline support around the GBP1,850/tonne from a level of about GBP2,100/tonne, implying a potential correction of about 15-20%…. [Read more]

Technological advances in hydraulic fracturing and horizontal drilling have resulted in booming gas production from shale deposits in the US. US gas reserves, once thought due to run out in 30 years, now look sufficient to meet 100 years of demand. While this is good news for the US, as it reduces gas import dependency,… [Read more]

The outperformance of gold since the credit bubble burst and global liquidity collapsed has been staggering. Just how impressive gold’s performance has been can be seen in the chart below, which shows the ratio of spot gold to the overall commodities basket. As you can see, the price of gold in terms of everyday commodities… [Read more]