Oil caught up in early commodity supercycle fervor

S&P Global Platts | Jan 18, 2021 at 1:43 PM
  • New York —
  • The more than 30% rise in Brent crude oil prices since November has caught many players in global commodity markets off guard.
  • Key industrial metals copper and iron ore have hit close to eight- and nine-year year highs, respectively, and JKM LNG prices are at unprecedented levels, reviving the prospect of a supercycle driven by economic stimulus spending, Chinese demand and a weaker dollar. There is a similar consensus growing that there is a risk of a price spike further out, given the billions of dollars in upstream spending cuts and the possibility that US shale struggles as a marginal producer to plug shortfalls quickly.