Oil prices might have already hit a floor for the year, according to Royal Bank of Canada analysts Helima Croft and Michael Tran, who anticipate commodity prices will get a boost from China’s economic re-opening.
“We remain constructive on the fundamental framework, and in fact, we would not be the least bit surprised if the lows of the year end up being the US$72/bbl print that we saw three weeks ago on the second trading day of the year,” Croft and Tran said in a note to clients on Sunday.
“As such, commodity investors see the metals trade as the first derivative of the re-opening, while individual consumer-linked commodities tied to societal behaviour have lagged the space, for now, but will play catch up once societal behaviour shows a steadfast degree of strength,” it said in the report.
“Following several long years of lockdown, the COVID-19 fear factor is likely high, meaning that a rebound in consumer behaviour is potentially subject to fits and starts, particularly if COVID-19 case counts and hospitalizations spike post Lunar New Year,” they said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: The Bank of Canada is right to ease off the brakes and see what happensThe Bank of Canada has likely put rate hikes on pause and could very well conclude it\u0027s done enough to douse inflation. Read on
Read more »
Opinion: The Bank of Canada is right to ease off the brakes and see what happensThe Bank of Canada has likely put rate hikes on pause and could very well conclude it\u0027s done enough to douse inflation. Read on
Read more »
Opinion: The Bank of Canada is right to ease off the brakes and see what happensThe Bank of Canada has likely put its rate-hiking campaign on pause and could conclude it's done enough to douse inflation. Read on via fpcomment
Read more »
Ottawa's spending is making the Bank of Canada's job harder: John ManleyFormer Finance Minister is the latest Liberal to voice concerns over Trudeau government\u0027s fiscal policy. Read more
Read more »
Ottawa's spending is making the Bank of Canada's job harder: John ManleyFormer Finance Minister is the latest Liberal to voice concerns over Trudeau government\u0027s fiscal policy. Read more
Read more »
Ottawa's spending is making the Bank of Canada's job harder: John ManleyFormer Finance Minister is the latest Liberal to voice concerns over Trudeau government\u0027s fiscal policy. Read more
Read more »