Economics
Citi Makes a Clarion Call for Commodity Bulls With 2017 View
- Oversupply is ‘finally being balanced,’ bank says in report
- Bank bullish on oil, copper, zinc on 6 to 12-month horizon
Oil Markets: From Contango to Backwardation
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Citigroup Inc. has given a clarion call for commodity bulls, predicting that most raw materials are expected to perform strongly next year as global economic growth picks up, the oversupply that’s dogged markets finally dissipates and investors plow in more funds.
The bank is bullish on oil, copper, zinc, and wheat on a six to 12-month horizon, with global growth seen at 2.7 percent from 2.5 percent in 2016, according to an e-mailed report. It’s bearish on coal and iron ore -- describing this year’s out-performance in bulks as a fluke -- and gold and soybeans.