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Broad commodity rally raises margin and spending squeeze risks
Bloomberg macro strategist Simon White warned the rally is broadening beyond oil and could pressure corporate margins and household spending.
A broad-based rally across commodities is moving beyond an oil-led story and is now spreading through energy products, industrial metals, precious metals, and agricultural “softs,” according to OilPrice citing market developments.
The article says energy prices have surged since early August, including European gas up 34% and gasoline up 22%, alongside metal gains (zinc and copper) and increases in silver, platinum, and gold.
OilPrice also links higher fuel prices to input costs across the economy, pointing to elevated diesel and gasoline costs tied to reduced refinery capacity from the Iran war, which it says is inflaming transport costs.
Bloomberg macro strategist Simon White warns in the piece that the commodity-driven inflation and growth risks could squeeze corporate margins and household spending, raising questions about how long stock markets can absorb an inflation shock that extends beyond energy.
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