Citi Research has predicted increasing demand for seven strategic minerals against the oil market in Q4 of 2024 globally.
CITI’S TAKE published in the Global Commodities Quarterly, on Thursday, September 17, 2024, listed Silver, Lithium, uranium, gold, Copper, Steel and Nickel as some of the strategic minerals that will lead the global economy by the years end, with a bias ahead of the oil market.
“We believe we are entering a momentous period for the global economy, asset markets, and commodity markets in particular. This environment looks set to provide strong trading and risk-management opportunities for commodities investors, producers, and consumers into year-end 2024, and we identify 7 high conviction commodity ideas in this piece. “
The report envisaged China’s bifurcated economy to move in full swing as the Fed and global central bank cutting cycles begin this week targeting the commodity sectors.
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“And we expect we will move into full swing by year-end. China’s bifurcated economy looks set to persist with strong energy-transition-related sector growth, set against weak housing/consumer/private sector activity.
“Substantial OPEC+ overcapacity after two years of cutting output and deteriorating oil balances for 2025 mean the OPEC+ early December meeting will be critical for the $3trn oil market and related asset markets:”
The report further noted a change in the coming months following the US elections set for early November, with tariffs and foreign policy likely to see key changes.
“And Russia is threatening to reduce exports of some commodities. We also introduce a new fundamental pricing framework for silver (hot on the heels of our gold framework two months ago), and a new copper end-use demand tracker.” It further read.
