Commodity

The Brent crude oil price continues to recover from its multi-year low but may soon encounter resistance, while silver and sugar prices rally.

The 50bp cut from the Fed led to some brief price spikes across the commodities complex. However, with the 50bp cut largely priced in, the move was short-lived.

While gold has captured most attention, silver supported by industrial metal strength is once again outperforming.

India will drive up to 35% of global energy demand growth over the next 20 years, petroleum minister Hardeep Puri said at the Gastech conference that started on Tuesday in Houston.

Oil prices steadied on Wednesday, after rising in the previous two sessions, as investors await the US Federal Reserve's (Fed) anticipated interest rate cut, with the potential for more violence in the Middle East supporting the market.

Australia, one of the world’s biggest natural gas exporters, expects to start shipping green hydrogen abroad by the end of this decade, seeking to spur sluggish progress in a global trade for the low-emissions fuel.

Ørsted, widely considered the greenest energy company in the world, recently decided to stop the construction of a plant for hydrogen-based fuel. There’s no clearer sign of the bumpy road ahead for synthetic fuel in aviation and shipping.

Jet fuel production in the U.S. also soared from pre-pandemic levels to 1.9 million barrels per day at the beginning of August, an increase of 8% compared to the year prior. As gasoline transitions into the fall period, it could also be a key factor in campaigns during the upcoming U.S. election cycle.

Demand concerns and prospects for a supply surplus in 2025 have weighed on oil prices; we’ve revised lower our Brent forecast for the rest of the year. European natural gas prices remain elevated on the back of supply risks.