(Bloomberg) — Investors are shielding themselves from a potential spike in oil prices. Palm oil futures are soaring, with traders turning to exchange-traded funds for gold amid geopolitical uncertainty and lower interest rates.
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Here are five notable charts to consider in global commodity markets as the week begins.
oil options
Although the rise in crude oil futures prices has subsided somewhat, buying of call options to prevent prices from skyrocketing remains active. Total open interest in Brent call options, which benefit when prices rise, rose to a record 2.19 million contracts as of Thursday. Investors remain nervous amid uncertainty surrounding the Middle East conflict.
Spending on renewable energy
To reach zero greenhouse gas emissions by 2050, global spending on renewable energy, battery storage and power grid upgrades will need to accelerate beyond record levels in 2023, according to BloombergNEF. There is. BNEF estimates that renewable energy will require an average investment of $1 trillion per year from 2024 to 2030 to reach that goal. Over the same period, average investments in battery storage will require $193 billion per year, and grid upgrades will require $607 billion per year. BNEF said governments need to abolish fossil fuel subsidies, lift regulations and ease supply chains to allow clean power developers to build projects.
palm oil
Futures prices for palm oil, the world's most widely consumed vegetable oil, have hit their highest since April due to tight supplies in major producers Indonesia and Malaysia. The trees that grow this commodity are aging, and the high prices have placed the crop at an unusual premium compared to soybean oil, the main alternative to the more abundantly harvested soybean oil worldwide. There is. If the escalating fighting in the Middle East disrupts trade in primary products and energy, the price of tropical oil, which is also used as a raw material for biofuels, could rise even further.
gold ETF
Investors are turning to gold as it has appreciated more than 25% this year, thanks to its appeal as a haven asset in times of geopolitical and economic uncertainty and its role as a diversifier to protect wealth. I'm starting to pay attention to ETFs. Global physical gold fund holdings rose for the fifth consecutive month, reaching 3,200 tonnes by September, according to World Gold Council data. Investors have been net short the gold ETF by about 25 tonnes year-to-date, according to market strategist John Reed at The company is said to have turned positive. WGC. Precious metal prices hit a record high of more than $2,600 an ounce last month, supported by the Federal Reserve's move to cut interest rates. Gold, which has a lower yield, tends to perform better in a low interest rate environment.
Milton & Gus
Natural gas futures fell as millions lost power just before and in the aftermath of Hurricane Milton. Gas is used to power plants that generate electricity for homes and businesses, and demand for gas typically plummets when the lights go out. Futures fell nearly 8% from the previous week.
–With assistance from Megan Durisin.
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