Commodities Outlook: What’s Driving Oil, Gold, and Base Metals

In this episode of Goldman Sachs Exchanges, Allison Nathan interviews Daan Struyven, Co-Head of Global Commodities Research and Head of Oil Research at Goldman Sachs, about the factors influencing commodity markets, particularly oil and gold. Struyven explains the recent volatility in oil prices, attributing it to geopolitical events and supply dynamics, and forecasts a potential price decrease due to strong supply growth. He also discusses the impact of heat waves on energy demand and the divergence in demand growth between oil and other commodities like copper. Shifting to gold, Struyven remains bullish, citing increased demand from central banks diversifying away from the dollar. The conversation also covers the effects of trade policies, such as tariffs on metals, and fiscal uncertainties on the commodities landscape, with metals seen as potential winners due to increased defense spending. Overall, the outlook favors gold and U.S. copper, while oil faces potential downside risks.