Commodities Face Tough Week as Fed Angst Builds, China Returns
- OPEC, IEA to issue monthly outlooks on worldwide crude market
- USDA WASDE snapshot; Mississippi River crisis; palm oil data
Commodities surged by more than 5% last week after OPEC+ agreed to chop oil supply, but the coming days may be more challenging territory for raw materials. Escalating concerns about more Federal Reserve rate hikes, China’s reopening after a week-long break, and potentially sobering commentary from IMF and World Bank annual meetings may all buffet prices.
In energy, highlights include outlooks from the International Energy Agency and Organization of Petroleum Exporting Countries as investors gauge prospects for demand, Europe’s energy crisis, and the impact of sanctions on Russia flows. In crop markets, the US Department of Agriculture lifts the veil on its vital WASDE snapshot. In addition, minutes from the Federal Reserve’s September rate-setting meeting, due on Wednesday, and US inflation data on Thursday, will shape the debate on interest rates, which may swing gold prices.