Commodities Get Pulled Into the Global Short-Volatility Trade
Some metals like zinc and aluminum have suffered after spiking on supply losses arising from the energy crisis.
Photographer: Christopher Pike/BloombergThis article is for subscribers only.
Traders are betting against volatility in raw materials prices, countering the commodity sector’s notoriously boom-and-bust history.
Whether it’s an oil market that is stuck firmly in a range due to OPEC+ cuts and abundant spare capacity, or copper prices torn between surging renewable demand and strains in more traditional consumption areas, there have been plenty of factors keeping the world’s commodity prices stuck in recent months. Gas volatility is back to where it was before a supply crisis in Europe.