Citi's Bullish on Commodities While Warning of Risk in China
- Global growth to buttress raw material demand gains in 2018
- China may slow, but capacity cuts and pollution curbs positive
Citigroup's Morse Says OPEC Is in Defensive Mode
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There’s much to encourage commodity investors in 2018, if they can keep a wary eye out for wildcards including China, according to Citigroup Inc.
Demand gains will be sustained through next year and in 2019, lifted by emerging markets as well as advanced economies, the bank said in a report. While there may be a slowdown in China, the top consumer of metals and energy and grains, stricter environmental standards and pressure to support bank balance sheets by eliminating overcapacity and curbing a glut could lead to tightness in some commodities, according to Citigroup.